Revolut Builds Toward Crypto Derivatives Launch
Hey Digital Banking Fanatic!
It came from a quiet signal in the form of a job ad (three, in fact), but one that speaks volumes about where Revolut may be headed next. The UK digital bank appears to be preparing its next move: a push into crypto derivatives.
It’s not the 1st time the company tests new waters before others dare. Back in 2017, Revolut became one of the first digital banks in Europe to introduce crypto trading, at a time when most saw it as reckless. Now, just a few years later, crypto has gone mainstream. And the outliers are no longer those who offer it, but those who still don’t.
This latest step would mark a shift beyond spot trading and into more complex territory, expanding Revolut’s crypto offering while navigating a regulatory minefield. The UK banned crypto derivatives for retail investors in 2021, and Revolut’s lead crypto counsel, Konstantinos Adamos, criticized the ban earlier this year as overly cautious.
Still, the company is hiring for the role in London, Barcelona, and Dubai, signaling a search for launch paths in jurisdictions with different regulatory frameworks. According to one job post, the goal is to scale the new product into “one of the most trusted, scalable and profitable derivatives offerings in the world.”
Crypto derivatives allow traders to take positions larger than the capital they invest, a feature that prompted the UK Financial Conduct Authority to restrict them from retail access in 2021. But other jurisdictions, like the EU and UAE, maintain frameworks that accommodate such instruments under certain conditions.
“If Revolut targets the UK market, regulatory buy-in would be difficult unless the product is restricted to professional clients,” said Daniel Arroche, partner at blockchain law firm D&A Partners. The company itself has confirmed that the hiring drive is focused on “institutional clients” across several markets, though no further detail was given.
Revolut’s results help explain the timing. Last year, the company saw crypto-related revenues jump 298% YoY, boosted by renewed trading activity and the launch of Revolut X. The story, however, is still unfolding.
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NEWS
🇬🇧 Revolut pushes into crypto derivatives, skirting UK ban on retail sales. After reporting record profits earlier this year, Revolut is now looking to expand its crypto offering. Derivatives are financial products that allow traders to speculate on the future price of assets without having to own assets directly.
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