#DigitalEuro
2 articles tagged #DigitalEuro — curated RWA tokenization coverage.
Revolut is launching a euro stablecoin into a market MiCA handed to an American company
Revolut is preparing to launch a euro-backed stablecoin, leveraging its extensive banking licenses to challenge the current market dominance of Circle’s EURC. This move comes as European MiCA regulations have inadvertently consolidated the euro stablecoin market around US-based issuers, creating a strategic opening for a European neobank. Revolut holds a full UK banking license, an EU banking license, and MiCA authorization, allowing it to issue regulated instruments directly on its own balance sheet. With 65 million users across 38 countries, Revolut possesses a distribution advantage that traditional crypto-native issuers lack. The company is simultaneously participating in the ECB’s digital euro pilot and the FCA’s stablecoin regulatory sandbox, positioning itself at the intersection of private and public digital currency development. By owning the currency issuance process, Revolut aims to bolster its valuation ahead of a potential $200bn IPO. While specific details regarding blockchain integration and reserve management remain unconfirmed, the initiative represents a significant shift in how neobanks integrate RWA tokenization into their core financial services.
Banks Back Tokenized Deposits To Compete in Digital Cash Race
Major financial institutions including Citi, BNY, JPMorgan's Kinexys, and Standard Chartered are accelerating the development of tokenized deposits to maintain their dominance in the evolving digital payments landscape. These digital representations of bank deposits operate on blockchain infrastructure while remaining direct liabilities of the issuing bank, ensuring compliance with existing deposit insurance and capital requirement regulations. This shift represents a strategic response to the rising competition from stablecoins and the development of central bank digital currencies like the digital euro. A notable milestone occurred in January when Lloyds Banking Group and Archax executed the U.K.'s first public blockchain transaction using tokenized deposits on the Canton Network. The European Central Bank is simultaneously advancing its digital euro project, targeting a 12-month pilot phase for the second half of 2027. By integrating these assets into distributed ledger technology, traditional lenders aim to secure their role in future treasury and payment systems. This trend highlights a broader institutional pivot toward tokenization as a means to modernize banking infrastructure while adhering to established regulatory frameworks.