coindesk.com
Revolut, a U.K. fintech that offers crypto trading, scrapped plans to buy a U.S. bank and will instead apply for a standalone banking license as it expands in the world’s largest financial market, the Financial Times reported Friday.
The London-based company had sought to fast-track its entry into the American banking system by acquiring a chartered U.S. lender, a move that would have allowed it to operate across all 50 states.
But the company, which last year reached a $75 billion valuation in a secondary share sale, concluded that an acquisition would be slower and more complicated than expected, the FT said, citing sources familiar with the situation. A purchase would probably have required it to keep physical branches, undermining its digital-only model.
Instead it is pursuing a "de novo" banking license from the Office of the Comptroller of the Currency (OCC). A de novo banking license is one given to new banks. Company insiders are betting that a revamped OCC under the Trump administration will process applications faster, according to the FT.
Revolut said the U.S. remains “critical” to its global ambitions and confirmed it's exploring multiple routes, including the de novo process. No final decision has been made.
While the U.S. regulatory landscape is fragmented, recent approvals, including banking charters granted to crypto firms like stablecoin issuer Circle Internet and international payments network Ripple, suggest a more fintech-friendly tone from regulators.
Revolut has also been pushing deeper into crypto. Last month, it partnered with Trust Wallet to enable instant cryptocurrency purchases in the European Union with zero fees in some cases. It's also secured a MiCA license via Cyprus, giving it regulatory approval to offer crypto services across the European Economic Area.