Revolut seeks acquisition of a US bank to accelerate entry, encryption users follow whether its license can unlock digital asset services.

UK fintech giant Revolut is exploring the acquisition of a US bank or applying for a local license to accelerate its entry into the huge market. This move aims to bypass the lengthy licensing application process and quickly start loan operations. The relaxed policies during the Trump era may assist its application, but acquisition is seen as a faster route. Successfully obtaining a license would not only help it compete with local rivals but could also pave the way for a restart of encryption trading and other digital asset services in the US, which is significant for global crypto users.

Why acquire American banks? Accelerate entry into the American market According to reports, digital banking giant Revolut is exploring the acquisition of a U.S. bank to accelerate its entry into the U.S. market. This move would allow the largest fintech company in the UK to bypass the typically lengthy process of applying for a banking license from scratch. According to the Financial Times on Tuesday, the company is considering acquiring a bank that already holds a national license. Through the acquisition, Revolut could start offering loans in the U.S. faster than by applying for a banking license independently, a process that could take several years.

License applications are also under consideration, Trump's policies may become beneficial Reports indicate that the company is weighing whether to apply for its own banking license or enter the U.S. market through acquisition. This fintech company, which has 60 million global customers, has been looking for ways to deepen its presence in the U.S., one of the world's largest financial markets. Obtaining a banking license in the U.S. would provide access to a vast customer base and deposit base, while at the same time British fintech companies are facing a slowdown in growth domestically. The Financial Times reported that former U.S. President Trump’s deregulation agenda suggests that the Office of the Comptroller of the Currency (OCC) may expedite the banking license approval process. However, Revolut is still exploring the most efficient path forward.

Global Expansion Ambition: Simultaneous Advancement in the Middle East and Latin America According to the Financial Times, the company is in talks for a $1 billion deal to raise new funds, bringing the fintech company's valuation to about $65 billion. Some of the funds will be used to support its global expansion. Revolut has also considered similar strategies in other regions, including plans for the acquisition of a bank in the Middle East. As part of its expansion plans, the company completed the acquisition of the Argentine bank Cetelem from BNP Paribas last month. Although Revolut holds banking licenses in Lithuania (allowing it to operate in the EU) and Mexico, it has not yet obtained a license in the UK. Regulators approved its application last year but imposed restrictions that continue to limit its lending activities.

Key to Bank of America License: May Pave the Way for Resuming Encryption Transactions The company's international ambitions go beyond traditional banking. Revolut has offered encryption trading services in the UK and the European Economic Area and has resumed limited encryption operations in Hungary this week. This move follows a regulatory freeze earlier this summer when Hungary enacted new laws requiring all encryption service providers to hold domestic licenses. As of October 2023, Revolut has suspended its encryption services in the US due to regulatory uncertainty. Today, its efforts to obtain a US banking license, if successful, could lay the foundation for a broader range of product services, including digital asset services. Industry observers note that obtaining a US banking license would be an important milestone for Revolut, helping it compete with US fintech rivals.

Conclusion: Revolut's strategic choice to accelerate its layout in the U.S. market, particularly the progress of its bank acquisition or license application, has attracted attention from the global fintech and cryptocurrency industry. Successfully obtaining a license not only means it can compete in the core market alongside traditional banks and emerging crypto-friendly banks (such as institutions providing Bitcoin spot ETF custody services), but more importantly, it may clear obstacles and restart cryptocurrency trading services for U.S. users, meeting the urgent demand of crypto users for compliant digital asset access. This will be a key step in its globalization strategy.