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Revolut X: Can New Crypto Exchange Compete with Binance, Coinbase, and Other Big Guns?

Last Updated May 7, 2024 11:18 AM
Teuta Franjkovic
Last Updated May 7, 2024 11:18 AM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • Revolut X targets experienced traders.
  • The platform will try to compete with big names by offering competitive fees and easy fiat on/off-ramps.
  • The company emphasizes its commitment to providing a secure environment for crypto trading.
  • Its temporary suspension of crypto services highlights ongoing challenges and scrutiny.

Revolut, a global fintech leader, introduced Revolut X  on Tuesday. This dedicated crypto trading platform is now open to its UK retail customers.

Revolut X has entered the competitive crypto exchange market with a strong proposition but faces substantial challenges competing against industry giants like Binance and Coinbase. These established platforms not only have a broader range of services and deeper market penetration but also benefit from a larger user base and more robust regulatory frameworks.

Revolut X Launches with 0% Maker Fees, Targeting Pro Traders

The company, which launched in the UK in 2015 with money transfer services, expanded into cryptocurrency trading in 2017.

As the largest fintech company in the UK, Revolut serves over 40 million customers globally. According to a statement , Revolut X is designed to rival major crypto exchanges by providing user-friendly access and competitive fees. While it targets professional traders, the platform is accessible from desktop to any UK user holding a Revolut retail account starting today.

Revolut X offers traders the ability to trade over 100 tokens  with a fixed 0% maker fee and a 0.09% taker fee, irrespective of their trading volume, according to the company. Initially, the platform will feature the same cryptocurrencies available on the Revolut retail app, such as Bitcoin, Ethereum, and XRP. Plans are in place to expand the range of assets in the future.

Competitive Fees and Easy On/Off Ramps

According to  Revolut Head of Crypto Exchange Product Leonid Bashlykov:

“We are excited by the introduction of our new crypto product, and believe this top-tier trading platform will change the game for experienced crypto traders, providing them with a safe and accessible place to trade. We understand that competitive fees as well as easy on and off ramping are at the heart of what experienced traders want from a crypto platform.”

Following the introduction of Revolut Ramp in March, Revolut has now launched Revolut X. The Revolut Ramp service was developed through a partnership with Consensys, the developer behind MetaMask, allowing users to buy cryptocurrency directly within their Web3 wallets.

Revolut X’s launch comes after the suspension of crypto trading for Revolut’s UK business clients  and the cessation of US crypto services.

Alex Saleh, Head of Partnerships at Blockchain protection firm Coincover, told CCN that Revolut’s launch of its new crypto exchange is a significant advancement in UK crypto, and demonstrates a significant turnaround from the regulatory uncertainty that was impeding innovation in the space.

He said:

“It’s really positive to see Revolut place a lot of emphasis on its “compliance-first” strategy. With robust compliance and security measures, it sets an example for a mature approach to crypto trading that aligns with institutional norms and should help to build trust in the market.

 Now Revolut’s millions of users can take a shot at using an advanced trading platform that backs funds 1:1, something that still haunts traders following the FTX fallout.”

Suspending US Crypto Services Amid SEC Scrutiny

Revolut announced in December that it would halt crypto trading for its UK business customers starting January 3, citing the need for more time to adjust to new regulations set by the Financial Conduct Authority (FCA) introduced in October.

The UK’s new crypto advertising rules, aimed at making crypto marketing more transparent and accurate, include a cooling-off period for first-time investors and posed challenges for some firms, including PayPal.

Additionally, in August 2023, Revolut suspended its crypto services in the US  due to the regulatory environment. This decision was made in conjunction with their US banking partner, Metropolitan Commercial Bank, following the delisting of tokens such as Polygon (MATIC), Solana (SOL), and Cardano (ADA), which the US Securities and Exchange Commission (SEC) classified as unregistered securities.

However, this suspension affected less than 1% of Revolut’s global crypto customers and did not impact users outside the US.

Revolut X Faces Uphill Battle Against Binance and Coinbase

Revolut X, while a strong entrant into the crypto exchange market, faces significant challenges in competing with established giants like Binance and Coinbase.

Binance, the top-rated exchange globally, offers a vast array of features and a significantly larger number of cryptocurrencies​​. Coinbase, although slightly more expensive in fees, ranks higher than Revolut in terms of features and depth of market access​.

Regulatory challenges in regions like the US underscore the hurdles Revolut faces in scaling operations. Meanwhile, the likes of Binance and Coinbase, have more robust regulatory frameworks and wider geographic availability.

To effectively compete, Revolut X will need to expand its asset offerings, enhance user experience, and navigate the complex regulatory environments successfully. Its strategy includes leveraging its existing large customer base from its fintech services and integrating advanced trading features to attract professional traders. However, whether this will be sufficient to compete at the level of Binance or Coinbase remains to be seen.

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