Revolut, the London-based fintech, has introduced a cryptocurrency exchange tailored for professional traders, dubbed Revolut X. In addition to giving customers the ability to buy and sell more than 100 different tokens directly from the platform, Revolut X distinguishes itself with low transaction fees. Makers incur zero charges, while takers only face a nominal fee of 0.09%. These fees serve as a warning shot for other crypto exchanges.
With a user base of 40 million worldwide, Revolut already handles cryptocurrency transactions through its app. The company initially launched in the UK in 2015 as a money-transfer service before expanding into cryptocurrency trading in 2017.
The Revolut X platform is open to any UK user with an existing Revolut retail account. Users can also conduct free transactions between crypto and fiat currencies, both to and from Revolut and Revolut X.
A Revolution in Fees
The lower fees are partly intended to entice users over to Revolut X, rather than buying and selling crypto through the Revolut app itself.
“This confirms the EU is far ahead in adopting a regulatory framework for this industry,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research. “Exchange fees are a race to the bottom, and if others follow Revolut’s lead, we could see fees across the board decrease. I’d imagine having the backing of a bank, such as Revolut, will enable greater confidence for customers to use their exchange, and will likely introduce more services such as staking, derivatives, or DeFi [Decentralized Finance] access in general.”
Stiff Competition
Revolut is entering a market where established players hold certain advantages. Binance, the largest exchange globally, offers a significantly wider range of cryptocurrencies compared to Revolut X at this time. Meanwhile, Coinbase charges slightly higher fees but also ranks higher in terms of features and market access depth.
For now, Revolut X won’t be available to U.S. traders. Revolut suspended its crypto services in the U.S. in August 2023, citing regulatory burdens. It is fairly common for newly launched DeFi projects to restrict access to individuals with a U.S. IP address due to stricter regulations.
Revolut has been busy enhancing its platform, including the introduction of Revolut Ramp, which streamlines the process of purchasing crypto. Additionally, the company is still awaiting its UK banking license, for which it applied three years ago.
But the most significant development for Revolut X is the fees, in a market that is always keenly attuned to costs. “I think Revolut will be the first of many banks to try to gain market share in capturing those fees,” Hugentobler said.
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