British FinTech giant Revolut is set to expand its footprint into Gulf Cooperation Council (GCC) countries, with specific plans to target the United Arab Emirates (UAE) and Saudi Arabia. As Revolut seeks regulatory approval to operate as an electronic-money institution in the UAE, the question arises: How far will Revolut go in expanding its crypto services in the region?
On May 7, 2024, Revolut unveiled Revolut X, a stand-alone cryptocurrency exchange aimed at professional crypto traders. The platform, launched to compete with established exchanges, boasts easy on- and off-ramp services and competitive fees—key features that align with the demands of experienced traders. Could this crypto-centric focus, highlighted by the launch of Revolut X, be an indication of what’s to come in the UAE?
Revolut X and the Crypto Strategy
Revolut X offers professional traders access to more than 100 tokens and promises flat fees of 0.09% for takers and zero fees for makers. The platform, which integrates with MetaMask, signals Revolut’s intention to strengthen its role in the Web3 space. “We understand that competitive fees as well as easy on and off ramping are at the heart of what experienced traders want from a crypto platform,” said Leonid Bashlykov, head of crypto exchange products at Revolut.
With Revolut X, the company is expanding beyond traditional financial services and into a fully-fledged crypto exchange, raising the question of how this offering will impact Revolut’s plans in the UAE. The UAE has become a hub for blockchain innovation and digital asset trading, making it an ideal market for Revolut to introduce its crypto services.
Mubadala’s Investment: A Potential Catalyst for Crypto in the UAE?
Revolut’s expansion in the UAE could receive a significant boost from Mubadala, one of Abu Dhabi’s leading sovereign wealth funds. With Mubadala’s investment in Revolut, there’s speculation that the FinTech could play a major role in facilitating crypto on-ramp and off-ramp services in the UAE, complementing the existing digital banking ecosystem. The UAE is already home to crypto-friendly banks like Wio and Zand, both of which are expanding their digital asset offerings.
Revolut’s partnership with Visa, which allows cross-border business payments through Visa Direct, further supports its position as a key player in the digital economy. These partnerships and investments indicate that Revolut is well-positioned to enter the UAE’s rapidly growing crypto market.
Competition and the Role of Crypto-Friendly Digital Banks
As Revolut prepares to enter the UAE market, it faces competition from established players like Wio and Zand. Both banks have embraced crypto services, creating a competitive landscape for Revolut. However, with the launch of Revolut X and its strategic partnerships, Revolut may have an edge in offering seamless crypto services alongside its core financial products.
The UAE government’s forward-thinking approach to blockchain regulation and crypto adoption provides fertile ground for Revolut to integrate Revolut X into its offerings. The regulatory environment, bolstered by recent announcements about stablecoin oversight and crypto asset regulation, will likely play a crucial role in determining the future of crypto services in the UAE.
Looking Ahead: What’s Next for Revolut in the GCC?
As Revolut eyes the UAE and Saudi Arabia for its next phase of growth, the introduction of Revolut X could be a game-changer for the region’s crypto landscape. CEO Nik Storonsky has made it clear during Dubai Fintech Summit that Revolut aims to be a truly global bank, and its recent moves suggest that crypto will play a central role in that vision. With the backing of Mubadala and a robust product offering that includes Revolut X and partnerships with major players like Visa, Revolut is well-positioned to make significant inroads in the UAE’s digital asset market. However, how it navigates regulatory challenges and competes with established crypto-friendly banks will ultimately determine its success.
