Revolut Launches EURR Stablecoin for European Customers

Revolut begins euro stablecoin rollout

Fintech firm Revolut has introduced its own euro-backed stablecoin called EURR. A stablecoin is a type of cryptocurrency designed to maintain a steady value by being tied to another asset, such as a traditional currency.

The company is initially releasing the token to a select group of retail customers. These users are located in Denmark, Poland, and Portugal. Revolut eventually plans to integrate the stablecoin more broadly into its main retail application.

Key details about the launch

• Revolut serves over 80 million retail customers, with 16 million of them already using the app for crypto services.
• The stablecoin is issued on two blockchain networks: Ethereum and Polygon. A blockchain is a digital ledger used to record transactions.
• Each EURR token can be redeemed at a value of 1 euro.
• The total euro-pegged stablecoin market is currently valued at less than $800 million, while the entire stablecoin market is worth over $300 billion.

Legal issuance and regulation

The stablecoin is issued by Bridge, a firm owned by the payment company Stripe. Bridge is authorized as an electronic money institution and is supervised by the financial markets watchdog in Luxembourg. The asset is also designed to be compliant with MiCA, which is the European Union's set of regulations for the crypto industry.

Technical details and reserves

To maintain its value, the funds backing EURR are held in separate accounts at regulated banks or invested in liquid euro-denominated assets. According to the issuer's reserve page, there were 374 EURR tokens in circulation at the time of the announcement, backed by 374 euros held as cash deposits.

The impact on mainstream crypto use

The launch of EURR could bring euro-denominated digital assets to a much wider audience. Because Revolut is a popular banking app, it provides a channel for mainstream users to access stablecoins without having to use specialized cryptocurrency platforms.

Sources

• CoinDesk