Revolut is getting rid of USDT: delisting the largest stablecoin and new rules for users
European fintech giant Revolut has officially announced the upcoming delisting of Tether's USDT stablecoin. This decision affects millions of platform users and signals significant changes in the company's policy regarding crypto assets.
According to the published schedule, purchasing USDT on the platform will only be available until July 6. Starting July 30, Revolut will completely stop accepting new deposits in this stablecoin. Users who already hold USDT will be able to sell the asset or withdraw it to external wallets until August 31.
After August 31, all remaining USDT balances in client accounts will be automatically converted into fiat currency at the current exchange rate. This means stablecoin holders need to decide on their strategy in advance: either withdraw assets to third-party platforms or sell them before the established deadline.
Why is Revolut abandoning USDT?
Revolut's decision is likely related to increased regulatory pressure in the European Union, especially in the context of the implementation of MiCA (Markets in Crypto-Assets Regulation). USDT, despite its popularity, faces criticism from regulators due to insufficient reserve transparency and potential risks to financial stability. Revolut, aiming to maintain licensing integrity and avoid legal risks, prefers to distance itself from the problematic asset.
This move may also indicate that Revolut is betting on more regulated stablecoins, such as Circle's USDC, which fully comply with European standards. For users, this means the need to review their cryptocurrency portfolios, especially if a significant portion of funds is held in USDT.
My analysis: The delisting of USDT by such a major player as Revolut is just the beginning. In the coming months, we will likely see similar steps from other European platforms. USDT is losing its position in a regulated jurisdiction, and this could lead to a liquidity shift into alternative stablecoins, which will have a long-term impact on market structure. USDT holders in Europe should prepare for the transition in advance.