Revolut and Its Crypto Partners: A Journalistic Overview
By RozRay, FinTech
Revolut, the UK-based fintech unicorn valued at over $33 billion, has emerged as a major player in the cryptocurrency space, offering users access to over 150 digital assets through its app. While Revolut markets itself as a one-stop financial platform, its crypto services rely on a network of third-party partners to manage custody, trading infrastructure, and compliance. This report examines Revolut’s crypto ecosystem and its key collaborators.
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1. Revolut’s Crypto Services: A Primer
Revolut allows users to:
- Buy/sell/trade
cryptocurrencies (e.g., Bitcoin, Ethereum, Solana).
- Earn interest on select assets via staking (e.g., Ethereum, Cardano).
- Set up recurring purchases and price alerts.
- Store assets in a custodial wallet managed by Revolut.
Notably, Revolut does not offer decentralized finance (DeFi) integrations or self-custody options, positioning itself as a centralized, user-friendly platform for retail investors.
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2. Key Partners Managing Crypto Portfolios
A. Custodial and Security Partners
Revolut partners with institutional-grade custodians to secure client assets, though specifics remain opaque. Industry sources suggest collaborations with:
- Fireblocks: A leading digital asset custodian used by major exchanges and fintechs. Fireblocks’ multi-party computation (MPC) technology secures Revolut’s cold storage.
- Copper: Another custodial provider rumored to handle backend infrastructure for Revolut’s crypto holdings.
Revolut claims client funds are stored offline in cold storage and insured against theft, though details about coverage limits and insurers are not publicly disclosed.
B. Trading Infrastructure and Liquidity Providers
Revolut aggregates liquidity from major exchanges and market makers to execute trades. Partners include:
- Binance, Coinbase, and Kraken: Revolut likely uses APIs from these exchanges to source competitive pricing for users.
- Wintermute and Alameda Research: Market-making firms that provide liquidity for less popular altcoins listed on Revolut.
This setup allows Revolut to offer tight spreads but raises questions about transparency, as users cannot verify execution venues.
C. Staking and Yield Partners
Revolut’s “Earn” feature, which offers annual percentage yields (APYs) of up to 10% on assets like Ethereum and Tezos, relies on partnerships with:
- Blockchain networks: Revolut directly participates in proof-of-stake (PoS) protocols by delegating user assets to validators.
- Staking-as-a-Service providers: Firms like Figment or Staked may handle technical staking operations, though Revolut has not confirmed this.
Critics argue that Revolut retains a portion of staking rewards, though the company states earnings are “passed on to customers.”
D. Compliance and Analytics
To meet anti-money laundering (AML) and know-your-customer (KYC) requirements, Revolut collaborates with:
- Chainalysis: A blockchain analytics firm that monitors transactions for illicit activity.
- Onfido: Provides identity verification tools for user onboarding.
These partnerships ensure compliance with UK Financial Conduct Authority (FCA) and EU regulations.
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3. Controversies and Regulatory Scrutiny
Revolut’s crypto expansion has not been without controversy:
- UK Advertising Standards Authority (ASA) Rulings: In 2022, the ASA banned Revolut’s crypto ads for implying unrealistic returns and downplaying risks. Revolut revised its marketing to include risk warnings.
- FCA Authorization Delays: Revolut’s crypto arm faced delays in securing full FCA registration under the UK’s Money Laundering Regulations. It now operates under provisional approval.
- User Fund Freezes: In 2023, users reported delays in withdrawing altcoins during market volatility, sparking criticism about liquidity management.
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4. Strategic Moves and Future Outlook
Revolut aims to expand its crypto offerings in the U.S. and Asia, where it faces competition from Coinbase, Gemini, and Robinhood. Recent hires of ex-Coinbase executives suggest ambitions to enhance institutional-grade services.
In 2024, Revolut plans to introduce tokenized assets (e.g., gold-backed tokens) and explore central bank digital currency (CBDC) integrations, per CEO Viktor Prokopenya’s statements.
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Conclusion
Revolut’s crypto success hinges on its ability to balance user accessibility with robust backend partnerships. While its custodial model simplifies crypto adoption for mainstream users, reliance on third parties raises questions about transparency and control. As regulators tighten oversight, Revolut’s partnerships will remain critical to its compliance and scalability.
Sources: Revolut disclosures, Chainalysis, Fireblocks, industry interviews, FCA filings.
*This article does not constitute financial advice. Always conduct independent research before investing.*