Global fintech company Revolut has launched a new feature enabling users to swap U.S. dollars for stablecoins at a one-to-one rate, with no associated fees, spreads, or hidden costs. This development aims to simplify the conversion process between traditional fiat currency and digital assets.
In an announcement on LinkedIn, Leonid Bashlykov, Revolut’s Head of Crypto Product, stated, “Today marks the day we remove all anxiety and friction of moving between fiat and crypto.” He detailed the feature, named "1:1 Stablecoins by Revolut," as a mechanism to ensure that $1 in fiat currency is equivalent to $1 in digital form.
This new service allows Revolut's extensive user base of 65 million individuals to convert up to $578,000 in USD and stablecoins every 30 days without any loss of value.
The feature supports two prominent stablecoins, Circle's USDC and Tether's USDT, across six different blockchains: Ethereum, Solana, and Tron, among others. Revolut will absorb any conversion spread internally to maintain the 1:1 exchange rate, provided the stablecoins remain pegged to the U.S. dollar.
Revolut indicated that this update is designed to streamline the transfer of funds between bank accounts and blockchain networks. The announcement follows Revolut's successful acquisition of a Markets in Crypto-Assets (MiCA) license from Cypriot regulators, granting them permission to offer crypto services throughout 30 European countries.
Potential Benefits for Small and Medium-Sized Businesses
Industry observers suggest that this new feature could extend significant advantages beyond individual users, particularly for small and medium-sized businesses (SMBs). Venture capitalist Elbruz Yılmaz, a fintech investor at Outrun, commented that Revolut’s one-to-one USD-to-stablecoin swap could prove highly beneficial for SMBs operating in countries like Turkey.
Yılmaz highlighted that SMBs in such regions frequently incur losses ranging from 0.8% to 1.5% of their funds during conversions from local currency to U.S. dollars, in addition to extra expenses from SWIFT fees and exchange rate slippage. By eliminating these direct losses, he explained, a direct one-to-one conversion mechanism could empower SMBs to manage their cash flow more effectively and reduce overall foreign exchange costs.
Fintech Companies Embrace Blockchain Technology
Revolut's latest update occurs at a time when an increasing number of financial institutions are actively exploring and integrating blockchain-based payment systems. Just last week, Western Union revealed its intention to introduce its own stablecoin, the U.S. Dollar Payment Token (USDPT), on the Solana blockchain, with an expected launch by 2026. This token, to be issued by Anchorage Digital Bank, will facilitate users' ability to send, receive, and hold digital dollars, with the initial rollout anticipated in the first half of 2026.
In parallel, Zelle and MoneyGram have recently rolled out stablecoin initiatives aimed at enabling faster and more cost-effective cross-border money transfers. Furthermore, SWIFT, the established global interbank messaging network, has commenced testing an on-chain messaging system utilizing Consensys's Layer 2 blockchain, Linea.
The Broader Financial Landscape
Revolut's strategic move signifies the growing integration of stablecoins into the broader financial ecosystem, moving beyond their initial niche within the cryptocurrency space. The company's new feature, supported by its MiCA license in Europe, illustrates how regulated fintech entities are increasingly bridging traditional finance with blockchain networks through practical applications.
Globally, a growing number of companies and governmental bodies are adopting similar approaches. Visa is expanding its stablecoin settlement network, while Circle and ClearBank are collaborating to enhance euro liquidity. Several nations, including Japan and Korea, have already introduced their own national digital currencies, and countries such as Canada, Australia, and France are actively developing regulatory frameworks to govern and oversee the use of stablecoins.
These collective developments point towards a gradual but significant shift in treating stablecoins as an integral component of everyday financial infrastructure, with the ultimate goal of enhancing efficiency and transparency in payment systems.