After Revolut, Robinhood also appears to be considering entering the stablecoin market: is the challenge to Tether beginning?
According to a report by Bloomberg, Robinhood is considering issuing its own stablecoin in response to the industry’s expansion and new regulations that will impact the market in Europe. The report suggests that, in addition to Revolut, Robinhood could also launch a stablecoin to compete in a sector primarily dominated by Tether.
Over the past two years, Tether has gained over 20% market share. Currently, the issuer controls about 75% of the global stablecoin market, also recording record profits of $5.2 billion in the first half of 2024, supported by a growing reserve of U.S. government bonds.
According to some sources, the success of this business model is attracting new operators to the stablecoin market.
Stablecoin regulation in Europe
The new rules imposed by MiCA regarding reserve requirements and transparency for stablecoins, which require that 60% of reserves be held in bank accounts, raise concerns among issuers. Tether’s CEO, Paolo Ardoino, has repeatedly highlighted that in Europe, very few banks accept this type of activity, further complicating compliance for operators and increasing risks.
