Revolut is back with another crypto update as it announces the launch of its crypto staking service for a variety of Proof Of Stake(PoS) tokens: Ethereum (ETH), Cardano (ADA), Polkadot (DOT), and Tezos (XTz). This new service will only be available in the UK and in select EEA markets initially.
Staking is the process by which users can deposit PoS based tokens to a blockchain in order to help secure the network. For example, Staking on Ethereum, requires users to deposit 32 Ethereum to join. There are also alternative services that let users earn rewards for staking less. Staking involves committing your crypto assets to support a blockchain network and confirm transactions. It's available with cryptocurrencies that use the proof-of-stake model to process payments.
Revolut is one of Europe's most valuable fintech firms, claiming over 25 million users worldwide, and it was valued at $33 billion in its latest funding round in July 2021. The London based company launched its first crypto offering back in December 2017, letting users buy, sell, and trade 25 of the most popular cryptocurrencies.
Revolut is also currently “assessing the best time” to launch its native cryptocurrency known as RevCoin this year.
A spokesperson for the challenger bank told that it is currently “scoping the market conditions and assessing the best time to launch RevCoin in the coming months."
Revolut has increased the number of digital assets it supports, offering more than 90 tokens today. In 2021, it also permitted the withdrawal of Bitcoin (BTC) to individual wallets.
The CEO of Revolut, stated in November that while cryptocurrency made up 30% to 35% of the company’s overall income in 2021, it accounted for only around 5% in 2020.
Now as staking has taken a hit over the past year it may effect a majority of Ethereum stakers causing them loss. However, many expect the market to pick up steam once the global financial troubles are dealt with. Moreover, staking is a profitable way to earn constant rewards when the market is right. Hence, Revolut could see a growth in users, thanks to its new staking service.
Also with inflation slowing down in the U.S., interest rates are expected to cool over the year. Once inflation is controlled, an influx of funds into risky assets such as cryptocurrencies should be a reality.
Revolut intends to make more cryptocurrencies available for staking but didn’t say exactly which tokens or what countries are next on the list for expanding the service.
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