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Crypto-focused financial technology firm Revolut secures complete banking license in the UK.
This action marks a significant advancement in Revolut’s ambition to establish itself as a global digital bank. Offerings such as cryptocurrency and stock trading will continue to function independently.
Revolut has obtained a complete U.K. banking license. (Kay/Unsplash/Modified by CoinDesk)
Key points:
- Revolut has been granted a full U.K. banking license, overseen by the PRA and FCA.
- Customer deposits that qualify will be safeguarded up to £120,000 ($160,000) through the Financial Services Compensation Scheme (FSCS).
- This step is significant for Revolut’s aspiration to be a global digital banking entity, while services such as cryptocurrency and stock trading will still be maintained separately.
Revolut, the fintech firm based in London that is friendly to cryptocurrencies, announced it has secured a full U.K. banking license, enabling it to provide a broader array of services and offering deposit protection for qualifying funds nearly two years after obtaining a restricted registration.
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The company, which was valued at approximately $75 billion during a funding round in November, has established a new entity named Revolut Bank UK Ltd. and will transition customer accounts in the upcoming months, as stated on its website.
This advancement finalizes a regulatory journey that began several years prior. In 2024, Revolut acquired a restricted U.K. license and commenced a mobilization phase aimed at new banks. The approval arrives shortly after Revolut applied for a banking license in the U.S.
The bank falls under the supervision of the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), which is the same regulatory framework that applies to conventional U.K. banks. This transition means that eligible customer deposits will be entitled to protection under the Financial Services Compensation Scheme (FCSC), which provides coverage of up to £120,000 ($160,000) per individual in the event of a bank failure.
The process of converting accounts to the new banking entity will occur in phases, and customers will receive notifications via email or in-app messages when their accounts are prepared for migration.
Most everyday functionalities will remain unchanged. The company has indicated that account numbers, sort codes, and IBAN details will stay the same, and the Revolut app will continue to display historical transactions and statements.
However, some services will not be included within the new banking entity. Savings balances will continue to be managed by partner banks, each subject to its own FSCS coverage limits. Additionally, cryptocurrency trading, commodities, and stock services will persist through separate Revolut entities.
