Will Tether Finally Meet Its Rival? Robinhood Reportedly Explores Stablecoin Offering

Fintech titan Robinhood is exploring the possibility of entering the multi-billion-dollar stablecoin market, a new report revealed, signaling increasing interest in stablecoins as the broader cryptocurrency industry continues to grow.

Robinhood is already working on possibly issuing its own stablecoin, but it has yet to make a final decision, Bloomberg reported Thursday, citing people with knowledge of the matter.

The Menlo Park-based fintech services provider, who also has a crypto arm, Robinhood Crypto, reportedly dabbled into the possibility over hopes that stricter regulations on stablecoins in the European Union and other jurisdictions will give it an opportunity to challenge Tether's dominance in the space.

The Burgeoning Stablecoins Market

As of early Friday, the stablecoin market is nearing a staggering $174 billion market cap, data from CoinGecko shows. Trading volume has exceeded $80 billion.

Tether's USDT takes up the majority of the market space, accounting for over $119.4 billion. In second place, USDC holds a market value of $36.3 billion. DAI, in third place, is even farther behind, with a market cap of $5.4 billion.

How MiCA Could Turn the Tides

The European Union's Markets in Crypto Assets (MiCA) regulation, which includes a comprehensive list of guidelines for crypto and digital asset service providers, is so far the most significant crypto-focused regulation worldwide.

The stablecoin-specific regulations have come into effect, but even before MiCA's implementation kicked off this year, Tether already faced a setback.

In March, crypto exchange OKX delisted its USDT pairs in Europe, with OKX customer support telling customers in the region that "modifications were essential for us to comply with regulations and uphold the security of our platform."

It remains to be seen whether other exchanges will follow suit, but OKX is one of the Top 5 largest crypto exchanges in the world by trading volume, making the delisting a serious blow to USDT.

Robinhood's Crypto Ventures

Meanwhile, Robinhood is a major fintech player that has been in the financial space for more than a decade and has carefully observed the ups and downs of global markets. A Robinhood spokesperson clarified that the company has "no imminent plans to launch this offering" when asked by Bloomberg for a comment.

The statement could mean that while there are no immediate plans to issue a Robinhood stablecoin, it could also mean that the fintech leader is not against the possibility.

Also, the company continues to dabble into the crypto space. Outside Robinhood Crypto, the company may soon have its own digital assets exchange. In June, it announced that it had agreed to acquire Bitstamp in a $200 million cash deal. At the time, Robinhood said the acquisition "better positions" the company to "expand outside the U.S. and will bring a trusted a reputable institutional business" to the evolving fintech behemoth.