Revolut Rolls Out 1:1 USD to Stablecoin Conversions

Neobank Revolut introduced a 1:1 exchange between USD and stablecoins, allowing its 65 million users to exchange up to $578,630 every 30 rolling days without incurring fees or spreads.

“Today is the day to remove all the fear and friction when moving between fiat and cryptocurrencies,” Leonid Vasilikov, head of crypto products at Revolut, posted on LinkedIn on Thursday.

“Revolut’s 1:1 stablecoin — $1 means $1.”

Revolut reported holding $35 billion worth of assets on behalf of its customers in 2024, an increase of 66% from 2023, with monthly transactions on the platform also increasing significantly.

Revolut’s services will apply to Circle’s USDC (USDC) and Tether (USDT) across six blockchains, including Ethereum, Solana, and Tron, Vasilikov said.

This comes about a week after Revolut received a crypto asset market regulation license from the Cyprus Securities and Exchange Commission, allowing it to offer regulated cryptocurrency services in 30 countries that are part of the European Economic Area.

Vasilikov said the purpose of 1:1 conversion is not to increase rates, but to “completely remove the hassle of on-chain and off-chain.”

But Elbruz Yilmaz, managing partner at venture capital firm Outran, said in response to Vasilikov’s post that a one-to-one transformation would have a major impact on small and medium-sized enterprises in countries facing economic challenges, such as Turkey.

He noted that small and medium-sized businesses lose significant value when they have to convert currencies such as the Turkish lira into US dollars, and losses are compounded by SWIFT fees and slippage when transferring funds across borders.

“Clean 1:1 ramps transform stablecoins from speculative assets to working capital infrastructure. Faster cycles. Less exchange hemorrhage. Better financial management.”