British digital bank Revolut to make crypto available in 50 US states
The company founded by British-Russian entrepreneurs has recently raised $500m, nearly tripling its valuation
Digital bank Revolut, which has recently tripled its valuation to $5.5bn (£4.2bn, €5bn), is aiming to make crypto available for its users in 50 US states.
Currently, the London-based bank founded by British-Russian entrepreneurs is actively working with crypto in Europe. It allows users to buy and sell Bitcoin, Ethereum, Litecoin, Bitcoin Cash and XRP for 29 fiat currencies.
Revolut claims that crypto is a major source of revenue for the bank and an important driver of user acquisition.
Dan Westgarth, Revolut general manager for North America, told Cointelegraph that the same service will soon be provided to customers in all of the US states.
According to Westgarth, Revolut's main rival in the region is Square, whose cash app offers its users only Bitcoin.
Revolut's users tend to favour Bitcoin and altcoins despite the extreme volatility, he said. “Our investors like crypto, they don’t mind the risk as long as it is well-managed, and we are good at it,” Westgarth said.
The manager believes that the future of the sector is closely related to the asset-backed tokens.
“It’s easy to buy stocks or bonds, even cryptocurrency, but for an unsophisticated investor to gain exposure to commodities is almost impossible. So, if there was a token pegged to diamonds or gold, this could be very appealing,” Westgarth claimed.
In early 2020, Revolut raised $500m (£386m, €460m) in a new funding round led by the US-based venture capital firm TCV that had previously invested in Facebook and Netflix. The new valuation for the company was set at $5.5bn, which is three times higher than in 2018 ($1.7bn). The total amount of funds raised by Revolut rose to $836m.
Revolut expanded to the US with a lot of help from payments giant Mastercard. Under the agreement, Mastercard will issue the Revolut’s debit cards in America. All of its US cards and at least half of its European cards will have Mastercard branding.
FURTHER READING: Digital bank Revolut triples its valuation to $5.5bn
FURTHER READING: Revolut speeds up US expansion with Mastercard deal