Revolut Plans to Change Paxos as Crypto Partner Later in September
August 11, 2022 at 11:00 am
by Anthonia Isichei
London-based fintech firm Revolut is reportedly looking to change its current cryptocurrency service provider, with plans to support crypto deposits, withdrawals, and staking.
British Neobank on the Hunt for New Crypto Service Partner
Anonymous sources revealed the news of the change, stating that Revolut is ending its collaboration with blockchain infrastructure platform Paxos by September 2022. As a replacement, the fintech firm will partner with Apex Crypto.
Apex Crypto is a cryptocurrency platform that provides both investment and trading services for digital assets. The company has already partnered with several fintech firms such as Public.com, Titan, Webull Pay, and Titan among others. These partnerships all have Apex as payment processors allowing the fintech client to process crypto deposits and withdrawals for their customers. Apex also secured a BitLicense in New York in March.
Revolut inked a partnership deal with Paxos in July 2020 after the consumer banking app launched in the United States market. The collaboration enabled Revolut customers in the U.S. to be able to buy, sell, transfer, and hold crypto through the fintech’s app, starting with bitcoin (BTC) and ether (ETH).
According to an email to customers, Revolut will disable the crypto trading feature during the migration to Apex, adding that account balances will not be affected. Also, the U.S. division of the neobank is planning to add 25 tokens to its platform after the change, in addition to the existing seven already supported on the platform.
Meanwhile, Revolut is looking to halt crypto peer-to-peer (P2P) transfers during and after moving to Apex, until further notice. The company said in an email:
“This was a tough decision, but one we had to make as a preemptive measure to ensure that the process is completed successfully. We’re working hard to enable this feature again in the near future.”
Finance Firms Continue to Onboard Crypto Infrastructure Companies
While Revolut moves from one crypto partner to another, the trend of fintech and finance firms partnering with crypto-native companies continues to gather momentum. This growing momentum is despite the bear market conditions that have characterized the entire 2022.
Paxos’ blockchain settlement infrastructure has already drawn attention of major banking institutions. The likes of Bank of America and Credit Suisse have already joined up to use the stablecoin issuer’s blockchain settlement rails. Paxos, for its part, has also secured regulatory approval in Singapore even with the country’s tightening of crypto regulations in recent times.
Another stablecoin issuer Circle partnered with asset manager behemoth BlackRock in April, with BlackRock managing cash reserves backing USDC.
Furthermore, Bakkt collaborated with American Bank to enable customers to trade crypto on Bakkt using the bank’s financial systems. Manasquan Bank also partnered with the crypto service provider to grant digital assets exposure to clients.