Robinhood VP Quashes Stablecoin Launch Rumors

By: Eliza Bennet

Robinhood Crypto Vice President and General Manager, Johann Kerbrat, has put an end to recent speculations surrounding the company's plans to launch its own stablecoin. In an interview on September 30, Kerbrat clarified that Robinhood currently has no immediate plans to delve into the stablecoin market. He stated, “At this point, we don’t have any immediate plan to launch a stablecoin. The rumors are always interesting, but we haven’t really spent time on it.”

The remarks come after a Bloomberg News report suggested that Robinhood and Revolut were both contemplating the introduction of a stablecoin. Despite the burgeoning interest in stablecoins, Kerbrat reiterated that Robinhood’s roadmap does not include launching its own digital stable currency in the near future. “It’s always interesting to see where people think we’re going to go next, but for now, that’s not part of our roadmap,” he added.

Robinhood has thus far approached the stablecoin sector through partnerships, such as listing Circle’s USD Coin (USDC). On the other hand, Revolut has broadened its crypto offerings but has not confirmed any specific plans for a stablecoin release. Though Revolut declined direct comment, a source familiar with the company indicated that the European fintech firm is “exploring” the possibility, albeit with no clear timeline or concrete plan.

TradFi and Stablecoins

The stablecoin market, primarily led by Tether (USDT), commands a significant portion of the overall cryptocurrency landscape. However, new entries into the market have faced numerous obstacles. Even major traditional financial institutions like PayPal and JPMorgan and industry leaders like Binance have been unable to challenge the dominance of USDT and USDC.

In August 2023, PayPal launched its own stablecoin, PYUSD, aimed at facilitating seamless payments and transfers among users. Despite its vast user base, PayPal’s stablecoin has struggled to make substantial inroads in a market overwhelmingly driven by crypto-native players. Nevertheless, the continuous speculation persists about Traditional Finance (TradFi) companies attempting to capture the growing demand for stable digital currencies, with Societe Generale being the latest contender to join this space.