Revolut Secures UK Banking License, Expands into Deposit and Loan Services

Fintech firm Revolut announced this Wednesday that it has received formal approval from the UK's Prudential Regulation Authority (PRA) to officially become a licensed bank in the UK. Revolut Bank UK will commence operations immediately. This move marks a crucial step in the company's transformation from a digital wallet service provider to a full-fledged commercial bank. According to the official announcement, the new bank will provide deposit account services to individual and corporate users, with eligible deposits covered by the Financial Services Compensation Scheme (FSCS) up to £120,000 (approximately $161,000 USD). This mechanism is similar to the US Federal Deposit Insurance Corporation (FDIC) protection system and aims to provide a safety net for depositors, enhancing public trust in digital banks.

Currently, existing Revolut users in the UK will be automatically migrated to the new bank accounts in batches. The entire transition process is expected to last several months, during which services will remain unaffected. The company stated that after obtaining the banking license, it will gradually launch a wider range of financial services such as credit and loans, further deepening its integrated financial ecosystem layout. It is worth noting that as the traditional financial system accelerates its acceptance of digital financial innovation, several crypto industry companies, including Ripple, Paxos, and Circle, are also actively seeking banking licenses or quasi-banking qualifications. Kraken's previously obtained Special Purpose Depository Institution (SPDI) charter has already paved the way for crypto asset institutions to enter the mainstream financial system, and the interaction between the industry and regulators is entering a new phase.