Revolut Partners with Polygon for Stablecoin Transactions in Europe

According to PANews, on November 18, European neobank Revolut announced a partnership with Polygon Labs, the Ethereum Layer 2 scaling network, to utilize Polygon as its preferred technology stack for stablecoin transfers, payments, and transactions. Customers in the UK and the European Economic Area (non-EU countries) can use the Revolut app and Polygon blockchain to remit cryptocurrencies such as USDC, USDT, and POL. This integration aligns with the EU's MiCA regulatory framework and considers the regulatory requirements for stablecoins like USDT. The press release states that Revolut will enable Polygon network support for stablecoin transfers in its app by early December 2024. As of November this year, transactions processed through the Revolut app using Polygon have exceeded $690 million. The integration offers a seamless Web3 experience within the Revolut app, featuring core functionalities such as: - Instant cross-border transfers of stablecoins USDC, USDT, and POL. - Crypto card payments within the Revolut app, allowing users to pay for everyday expenses using stablecoins. - Support for POL tokens, enabling users to stake or trade POL directly through the Revolut app, simplifying access to the Polygon ecosystem without external wallets. - Direct fiat currency exchange within Revolut, lowering entry barriers and promoting stablecoin circulation, with over $3.6 billion in stablecoin supply on Polygon. Revolut serves over 65 million users across 38 countries, including 14 million crypto users. Since 2017, the bank has offered cryptocurrency trading services in certain regions, but due to regulatory uncertainties, this feature was discontinued for U.S. users in 2023. Last month, the company obtained a MiCA license in Cyprus, potentially paving the way for launching its own stablecoin. In June, insiders revealed that Revolut was considering launching its own stablecoin, following the expansion of its cryptocurrency services to over 30 countries with the introduction of Revolut X a year ago. The integration with Polygon follows the network's significant payment upgrade, named Rio, which enhances speed, efficiency, and reliability, achieving nearly instant settlement of up to 5,000 transactions per second, ensuring high throughput and low latency. In addition to Revolut, other institutions like Stripe, Mastercard, Flutterwave, and Reliance Jio have chosen Polygon as their cryptocurrency payment channel. Revolut's adoption of Polygon reflects a broader trend as businesses seek to reduce transaction costs and improve service efficiency. The long-term application of these systems will depend on their stability, compliance, and user acceptance of volatile digital assets.