Financial technology company Revolut has launched a bank in the United Kingdom after receiving regulatory approval. Revolut Bank UK will offer deposit accounts with protections similar to U.S. FDIC insurance. This move highlights a broader trend of crypto and fintech firms seeking banking licenses to integrate more closely with traditional finance.
Revolut announced it has launched a bank in the United Kingdom after receiving approval from the Prudential Regulation Authority. Revolut Bank UK will begin offering deposit accounts for individuals and businesses.
Eligible deposits up to $160,958 are protected by the Financial Services Compensation Scheme, which is similar to FDIC insurance in the United States. Existing Revolut UK customers will be rolled over to the new account type gradually over several months.
The company said the new bank sets the stage for offering a “wider range” of services in the future, including lending. Revolut also applied for a full banking license in Peru and a federal banking charter in the United States in January.
Crypto industry companies are increasingly looking to acquire national bank charters. These companies include Ripple, Paxos, and stablecoin issuer Circle.
In March, crypto exchange Kraken was granted a limited-purpose master account with the Federal Reserve Bank of Kansas City. The approval was a historic first for the cryptocurrency industry.
A trade organization representing the banking sector is reportedly considering filing a lawsuit against the Office of the Comptroller of the Currency to block crypto companies from acquiring bank charters. The banking lobby has repeatedly pushed back against crypto companies offering banking services.
