Summary
- Revolut has reportedly scrapped its plan to acquire a US bank and shifted strategy to applying for a de novo bank charter (de novo license).
- A US bank acquisition was seen as burdensome because the process is complex and potential requirements to maintain physical branches do not fit its digital-first business model.
- Amid signs of easing regulation for digital-asset and fintech firms in the US, Revolut is said to be looking to precedents such as Circle and Ripple securing bank charters.
UK fintech firm Revolut has scrapped plans to acquire a US bank and is instead pursuing an application for a de novo bank charter, according to reports.
CoinDesk, a digital-asset (cryptocurrency) news outlet, reported this on the 23rd (Korea time), citing the Financial Times.
Revolut had been weighing a US bank acquisition to accelerate its expansion into the US market, but is said to have revised its strategy after concluding the process would be more complex and time-consuming than expected. In particular, the potential requirement to maintain physical branches in an acquisition was seen as a burden, given the mismatch with its digital-first business model.
Accordingly, Revolut is considering seeking a de novo bank charter from the Office of the Comptroller of the Currency (OCC). The Financial Times said: "A de novo bank charter is an authorization granted to a new financial institution, and within Revolut there is an expectation that the OCC approval process could proceed more quickly during the Donald Trump administration."
In fact, the US has recently shown signs of easing certain regulations related to digital-asset and fintech companies. Stablecoin issuer Circle and global payments network Ripple have secured bank charters.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
