Crypto-friendly Revolut launches UK bank after regulator lifts license restrictions

Revolut has received regulatory approval to launch a fully licensed bank in the United Kingdom after the Prudential Regulation Authority lifted restrictions on its banking license, allowing Revolut Bank UK Ltd to begin operating.

The move enables the crypto-friendly fintech to offer accounts protected by the Financial Services Compensation Scheme, which safeguards eligible deposits of up to £85,000 ($114,000) per customer if a bank fails, marking a significant step in the firm's effort to expand its banking services for both retail and business customers. Revolut already serves around 13 million customers in the UK, its largest market.

In a statement on Wednesday, the company said it will gradually begin rolling out current accounts to customers in the coming days, initially starting with a small group before expanding access over the coming weeks. Existing Revolut customers will see no immediate changes, with the firm planning a phased migration to the new bank that is expected to take a few months.

Revolut's cryptocurrency trading services continue to operate through a separate entity within the same app, remaining distinct from the newly launched UK banking platform and not covered by the FSCS.

Revolut's global banking ambitions

Revolut co-founder and CEO Nik Storonsky described the launch as a major milestone for the company.

"Launching our UK bank has been a long-term strategic priority for Revolut, and marks a significant moment in our journey," Storonsky said. "The UK is our home market and central to our growth."

Francesca Carlesi, Revolut's UK CEO, said securing the license will allow the company to expand its range of financial products.

"Securing this licence lays the foundation for our next chapter: expanding into a broader suite of products, including credit, to sit alongside the innovative services our customers already rely on every day," Carlesi said.

Analysts said the move could significantly expand Revolut's competitive position in the UK banking market, signaling a shift in how the company competes with traditional lenders.

"This is the moment Revolut really transfers from large-scale fintech disruptor to a fully-fledged mainstream banking competitor," Elliot Reader, a director in Houlihan Lokey's fintech group, told The Block. "The full licence will open the door to balance sheet driven products and sharpen pressure on both traditional banks and the cohort of challenger banks."

The UK banking launch comes as Revolut pursues broader global expansion.

The company recently pledged to invest £3 billion ($4 billion) in the UK and create 1,000 high-skilled jobs, while separately announcing plans to invest £10 billion ($13 billion) globally and add 10,000 roles as it expands into 30 new markets by 2030.

Earlier this month, Revolut sought a de novo banking charter in the United States with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation after abandoning plans to acquire a U.S. lender.

Back in the UK, the Financial Conduct Authority recently selected Revolut to participate in a regulatory sandbox testing fiat-pegged stablecoins, part of a broader push by UK regulators to develop rules for digital asset payments and settlement systems.