Revolut Secures U.K. Trading License, Setting the Stage for Stock Trading Expansion

Revolut, the UK's most valuable fintech firm, reaches a climactic point in its tale of growth. The company revealed that it has acquired a trading license from FCA, which will enable the firm's users to begin purchasing and selling equities listed on both U.K. and international stock exchanges, as well as EU markets from 2025. It is the latest major expansion in investment product lines at the company, which so far has been marked by the listing of equities in the U.S. since its trading services went live back in 2019.

The license sets Revolut on yet another milestone of its bold trailblazer journey to breaking the mold of financial services. The fintech giant, which has over 650,000 trading customers in the U.K. and a total user count of more than 45 million, aims to ensure solid footing in investment. Headed by Yana Shkrebenkova as the head of wealth and trading in the U.K., the company spoke highly of the license and how it would enable the company to bring "best-in-class investment products" to its customers.

The trading license is the company's latest in a series of regulatory wins. In July, after waiting three years to be approved by the Prudential Regulation Authority (PRA), Revolut finally obtained a banking license in the U.K. but with certain conditions attached. This banking license sets the nine-year-old fintech on course to compete directly with major banks in Britain and further muddies the waters between fintech disruptors and traditional financial institutions.

The rise of Revolut has been nothing short of meteoric. Born in 2015 by founders Nik Storonsky and Vlad Yatsenko, this company has expanded into being a global financial giant offering services ranging from foreign exchange to even cryptocurrencies and now stock trading. Its valuation soared to $45 billion in August when the company raised capital through a secondary share sale led by Coatue, D1 Capital Partners, and Tiger Global among the U.S. investment giants. The sky-high valuation has catapulted its founders into billionaire territory, with Storonsky's fortune estimated to be $7.9 billion and Yatsenko's net worth standing at $1.2 billion, according to Forbes.

As Revolut prepares for stock trading with U.K. and EU-listed companies, it also has an eye on an IPO. While the fintech hasn't released details on when or where, speculation is building. The U.K. government has been actively promoting the choice of London by Revolut to host its IPO over New York. This listing will prove a significant boost for London's financial markets, especially now that the UK wants to be on par with the world's leading financial hubs if the Brexit decision is carried forward.

The meteoric success of the company speaks for its ability to adapt and innovate in a competitive industry. Since the launch of Revolut, it has been the first mover and has provided smooth financial solutions to the tech-savvy, mobile-first generation. Through stock trading and banking, it continues to push the limits of what a fintech company can achieve.

But becoming a more regulated service operator puts Revolut under additional stress. Its new licenses subject it to increased scrutiny and strict compliance, which puts pressure on its reputation and operational efficiency. However, it is perfectly poised to tackle those issues with its committed client base and great product offerings already built into it.

The expansion of Revolut's trading services signals a wider trend in the fintech industry, where companies are competing to provide comprehensive financial ecosystems for their users. From banking to investments, Revolut is building a one-stop platform that caters to diverse financial needs, setting a high bar for competitors. As it prepares to roll out U.K. and EU stock trading by 2025, the giant of fintech will be firmly and permanently on the list of world financial leaders.

Revolut now will take front stage among things to observe. In either service providing stock trading facilities in the near future or by going long-term with an IPO, this business is truly writing the lessons in course for building tomorrow's futures of financial markets.