Revolut Leads UK Crypto-Friendly Efforts With New Crypto Staking Feature
Following efforts to consolidate its spot as Europe’s largest crypto-friendly neo-bank, Revolut recently launched a cryptocurrency staking feature on its app. Kicking off with Cardano, Tezos – and much later to join – Ethereum and Polkadot, Revolut is looking to tap into growing crypto interest among its nearly 25 million unique users.
Alongside traditional finance services, its in-app platform also features basic analytics of the crypto market, buy options for tokens and an opportunity to stake for annual percentage yields of up to 11.65%.
As of the time of the report, Tezos ($XTZ) and Cardano ($ADA) are the only two tokens visible for staking. Revolut offers 4.4% APY for Tezos payable (or restakeable) every 72 hours and 3.2% APY for Cardano payable every five days.
Originally set up in 2015 as a card payment platform offering cheaper-than-bank rates, Revolut now stands tall as one of the few online banks with a broad geographical presence across Europe. In its 2021 financial reports, the company pegged its valuation at $33 billion making it UK’s most-valued startup. With over 40 full and partial regulatory licenses, its services are fully operational in the US, Europe, Singapore, Australia, Japan and Switzerland. Five months ago, the UK Financial Conduct Authority (FCA) offered Revolut a provisional license to carry out crypto services, setting the stage for a flurry of innovative products around the space.
The announcement comes on the heels of Britain’s resolve to weed out fraudulent and incompetent players within the space. Recently, over 260 out of 300 applicants for crypto operational licenses were recently turned down. In mid-2022, its digital finance minister, Chris Philip, expressed his desire to make Britain a global hub for crypto. The ongoing regulatory efforts are already in competition with Markets in Crypto Assets (MiCA)–Europe’s elaborate framework for regulating crypto players. But recent reports label the country a flourishing hotbed for crypto scams given its porous business registration due diligence.
With the devastating losses of the 2022 bear run, it is unclear whether Revolut’s crypto arm will continue to remain profitable. Estimated losses float around $240 million per Reuters report, but as everyone awaits its recent financial reports, the company’s CEO, Nikolay Storonsky has assured that the bank is in a healthy position to continue operations after securing an $800 million Series E funding in 2021.
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