Crypto

After shares, Revolut is considering a new asset class

Revolut offers trading services, the purchase of cryptocurrencies and goods, and an e-commerce marketplace. In the beginning, these three services were marginal, but now they make up the bulk of Revolut’s revenues needed to survive and recover from the pandemic crisis.

The company is reportedly holding nearly $ 1.4 billion in cryptocurrency on behalf of its customers. He claims to be opening 300,000 new cryptocurrency wallets per month. There is also success in trade.

Last week, its chairman, Martin Gilbert, spoke about this during the ETF Deployed Ecosystem virtual conference. And a new one is coming. Revolut is considering adding a new product.

Revolut eyeing ETFs

The British neobank will consider the possibility of including a new asset class in its offer. “Revolut will have to deal with asset management. There is no plan at the moment, but it cannot be avoided. “he said first, before going into details: “ETFs would be the perfect product to offer.”

Exchange Traded Funds (ETFs) are currently not available on Revolut, which has focused on equities in the past few days, especially the PSPC. To offer clients the opportunity to diversify their portfolios and invest more safely when you don’t know anything about it, ETFs are the optimal solution.

ETFs are investment funds that typically track an index or category of security (for example, technology company securities or more specifically financial technology, green technology). The basket consists of a group of securities, each amount of which is weighted in such a way as to accurately reproduce the index chosen as a benchmark.

Thus, investing in ETFs, investors place one order to invest in several companies that are included in the basket. Every year the basket changes, as does its weight. They continue to trade on stock exchanges in the same way as stocks during their respective markets’ opening hours. With the help of a single product, clients gain access to various securities to diversify their investment portfolio.

Revolut is currently offering its trading activities through a partnership with DriveWealth. The American company offers the entire brokerage infrastructure to Neobank via API, which has already led to the fact that Revolut was forced to apply such solutions, as in the case of GameStop, which neither the clients nor the management team of the banking institution liked.

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