British fintech company Revolut, which offers cryptocurrency trading, has scrapped plans to acquire a U.S. bank and will instead apply for a standalone banking license to expand in the world’s biggest financial market, the Financial Times reported on Friday.
The London-based company was looking to speed up its entry into the U.S. banking system by acquiring a U.S. chartered lender, which would allow it to operate in all 50 states.
But the FT, citing people familiar with the situation, reported that the company, which reached a valuation of $75 billion in a secondary stock sale last year, concluded that the deal would be slower and more complex than expected. Acquisitions would likely require maintaining physical branches, undermining the digital-only model.
Instead, it is seeking a “new” banking license from the Office of the Comptroller of the Currency (OCC). A de novo banking license is a license given to a new bank. According to the FT, company insiders are betting that the OCC, revamped under the Trump administration, will process applications more quickly.
Revolt said the US remains “critical” to its global ambitions and confirmed it was exploring multiple routes, including new processes. No final decision has been made.
The U.S. regulatory landscape is fragmented, but recent approvals, including banking licenses granted to crypto companies such as stablecoin issuer Circle Internet and international payments network Ripple, suggest regulators are leaning more toward fintech.
Revolut is also delving deeper into cryptocurrencies. Last month, the company partnered with Trust Wallet to enable instant crypto purchases within the European Union, in some cases with zero fees. It also secured a MiCA license via Cyprus and received regulatory approval to provide encryption services across the European Economic Area.
