Revolut Lowers Crypto Trading Fees in the US to Boost Growth

Revolut, the British digital bank, has lowered fees for customers in the United States (US) on a range of products.

Revolut has a difficult start

Due to the tariff adjustment, the fintech company’s US customers can now trade up to $200,000 in crypto every month without incurring any commission fees. Previously, Revolut users could ‘only’ trade $200 per month before paying these transaction fees.

Other changes allow users to withdraw a certain amount per month. They are also allowed to send up to 10 international transfers per month and set up five accounts for their children for free.

Ron Oliveira, CEO of Revolut in the US, said the move is about raising awareness of the company locally. Revolut was launched in the US in March 2020, just as the corona pandemic hit. The unfortunate timing hampered early marketing efforts, Oliveira said. Oliveira says the following:

“We experienced a very quiet opening. Now it’s about where we go from here. What we found is that we have the deepest and broadest offering of any fintech in the United States.”

Buy crypto outside the bank

Revolut was launched in London in 2015 and started as a currency exchange tool. It now forms itself as a financial ‘super app’, offering current accounts, stock and crypto trading and a range of other products. CNBC recently revealed that the startup plans to begin stock trading for US clients in the coming months roll.

Revolut is also pursuing a US banking charter. This is what it plans to do in many of the markets in which it operates. The startup has in March submitted a draft application at the Federal Deposit Insurance Corporation and the California Department of Financial Protection and Innovation. Oliveira said the following:

“Part of our global strategic plan is that we want to have banking licenses in countries where we already have a large presence, or where we think the benefit is great, and of course that is in the US. A charter would allow Revolut to offer a wider range of products. The company is already rolling out credit cards and unsecured lines of credit in the US.”

Revolut needs to convince regulators that banking and crypto products can coexist within the same service. Only then can his charter bid be successful. Oliveira said the following:

“Crypto is one of their key questions. Well, ‘how is crypto handled, inside or outside the bank?’ That is the key question. Is crypto inside or outside the bank? For us, crypto is outside the bank. How it’s structured is that if you have the Revolut app and want to buy your crypto, you don’t go to the bank to buy that, you go outside the bank. You go to another entity to do that.”

The proposed structure is reminiscent of the model adopted by Zopa, the UK peer-to-peer lender founded in 2005. The company launched a licensed bank in the UK in the summer of 2020, which it now operates alongside (but segmented from) runs its peer-to-peer lending.

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