financemagnates.com
Revolut, a London-headquartered challenger bank, has launched a cryptocurrency staking service for the European Economic Area (EEA) and UK customers, according to the report from AltFi.
Revolut to Roll Out Crypto Staking
So far, the product has only reached a limited number of users, but its full debut is expected this week. While customers will be able to earn additional revenue from staking the most popular cryptocurrencies, the service will remain in a 'soft test' phase.
Revolut, which claims to have 25 million users worldwide, first introduced cryptocurrencies to its offering during the 2017 bull market peak. Since then, they have become an essential part of the revenue generated by the neobank, and the company is considering launching its own cryptocurrency.
According to AltFi, the staking of cryptocurrencies, of which Revolut has nearly 100 on offer, will initially be limited to four tokens, including Polkadot (DOT), Ethereum (ETH), Cardano (ADA) and Tezos (XTZ). Yields are said to range from 2.99% to 11.65% per annum but are not guaranteed.
In the digital asset market, a staking service involves locking up a certain amount of cryptocurrency in a wallet. It can range from a few days to even a few months, helping to secure the network and validate transactions as part of a proof-of-stake consensus. In return, the staker receives an additional profit in the form of interest. Staking can be compared to a traditional bank savings account.
Revolut is also seeking to build its cryptocurrency regulatory base in various places around the world, obtaining authorization from the CySEC to offer crypto provider services within European countries. Previously, it obtained permission from the Monetary Authority of Singapore to provide cryptocurrencies in the country.
Watch the recent FMLS 2022 executive interview with Vladimir Krupnov, Threat Intelligence Lead at Revolut.
Market Awaits Revolut's RevCoin
Focusing on the continued expansion of its cryptocurrency offering and wanting to respond to the needs of its users, Revolut had planned the launch of its crypto dubbed RevCoin last year. However, the plans were pushed back due to a prolonged crypto winter and the collapse of the FTX exchange, which pushed the industry into more substantial declines and prompted capital outflows from exchanges and cryptocurrency platforms.
The news of RevCoin's postponed debut was published by Financial News (FN) in January, citing people familiar with the matter. In an interview with FN, a Revolut spokesperson said the company is evaluating current market conditions and the most optimal time to launch RevCoin in the upcoming months.
Nik Storonsky, the Founder and CEO at Revolut, firstly disclosed the plans to launch own cryptocurrency in May 2022. Revolut's digital asset will probably act as a loyalty token, rewarding the most active users.
Revolut's Financial Report Also Postponed
RevCoin is not the only major update that customers and investors are waiting for. Revolut has still not published its 2021 report. Initially, the report's publication summarising the period that ended more than 14 months ago was planned for September 2022. However, the company postponed the publication to December, but two days before the final deadline, it stated again that it would publish the financial data in 2023.
Michael Bodansky, the Head of Corporate Communications at Revolut, confirmed the news, which was first reported by AltFi, to Finance Magnates. "Yes, that's correct - we intend to announce our account in the new year," Bodansky said.
As January has passed, Revolut has still not shown its financials. The last report was published in June 2021 and was for 2020 figures, showing an increase in revenue to £261m and an operating loss of £122m. 2021 is expected to be the first time Revolut shows a net profit, according to analytical consensus.