Revolut Launches 1:1 USD-to-Stablecoin Conversion Feature

• Revolut’s 1:1 stablecoin exchange removes conversion costs, streamlining fiat-to-crypto transactions globally.
• The MiCA license enables Revolut to expand regulated crypto services across Europe.
• Businesses gain faster cross-border payments and reduced FX losses through stablecoin parity.

Neobank Revolut has already implemented an option that removes the option of a fiat and crypto trade. It is now possible to exchange the U.S. dollar to stablecoins at an actual 1:1 rate with no fees, spreads, or markups. The action will help streamline the transfers of money between conventional banking infrastructures and blockchain networks by customers. It is another significant step of Revolut to develop its regulated crypto activities in Europe.

Seamless 1:1 Exchange Across Multiple Blockchains

Revolut declared that clients are able to exchange up to around 578,000 (or 500,000) USD (or stablecoins) within 30 consecutive days with precise parity between the two currencies. The functionality enables USDC and USDT of Circle and Tether, respectively, across 6 major chains, such as Ethereum, Solana, and Tron.

Bashlykov, the Head of Crypto Product at Revolut, wrote that the revision is aimed at eliminating the historical friction between the fiat and crypto movements. He stated that Revolut will internalize internal spreads in order to make the dollar value the same during conversion, so long as the stablecoins are pegged.

The launch of free conversions is revisiting an initial strategy of Revolut in the foreign exchange service a decade ago. Subsequently, the firm broke the conventional banking system and offered transparent FX rates and simple international transfers. It is currently trying to do the same to digital assets by rendering stablecoins just as available and reliable as fiat money.

Expanding Crypto Access Under MiCA Framework

This is based on Revolut obtaining a Markets in Crypto-Assets (MiCA) license in the Cyprus Securities and Exchange Commission that enables the neobank to provide regulated crypto services in 30 countries of the European Economic Area. The crypto unit of the company has expanded tremendously and currently has close to $35 billion  in customer assets in 2024, 66% higher than last year. Revolut currently supports more than 200 digital assets and allows making direct payments in crypto.

Industry players feel that the 1:1 conversion facility is the possible game changer in the business of treasury operations in international companies. The Outrun Managing Partner Elbruz Yilmaz believed that the small and medium-sized businesses, particularly within emerging markets would obtain access to stable working capital at a lower foreign exchange loss.

The new product offered by Revolut is entering a market that is already heating up due to competition by big players in the payment sector. Western Union, SWIFT, and MoneyGram are each working on blockchain-based settlement systems to facilitate international transfers. The USD-stablecoin bridge that Revolut functions within makes it the leader in this change as it bridges the gap between traditional finance and blockchain into a single digital banking app