Revolut Secures Complete UK Banking License: Impact on Deposits and Cryptocurrency Accounts

Key Highlights

• Revolut secured complete UK banking authorization under PRA and FCA supervision
• Customer deposits now qualify for FSCS protection covering up to £120,000 ($160,000)
• Revolut Bank UK Ltd. established as new banking entity; customer migration scheduled for upcoming months
• Cryptocurrency trading, equities, and commodities continue operating under distinct Revolut divisions
• Additional banking license applications submitted in the United States and Peru

The London-headquartered financial technology firm Revolut obtained complete UK banking authorization this Wednesday. The Prudential Regulation Authority (PRA), responsible for supervising conventional British banking institutions, granted the approval.

A newly established entity named Revolut Bank UK Ltd. will operate under this license. Current UK account holders will transition to the updated account framework throughout the following months.

This approval concludes a multi-year journey. Revolut initially obtained conditional UK authorization in 2024, entering a mobilization period—a typical preparatory stage for emerging banks before receiving unrestricted approval.

Account transitions will occur incrementally. Customers will receive notification through email or application alerts when their migration becomes available.

Following a November funding initiative, Revolut holds an approximate valuation of $75 billion. The platform serves more than 10 million customers throughout the United Kingdom.

Understanding Deposit Insurance for Account Holders

With the new authorization in place, qualifying customer deposits receive Financial Services Compensation Scheme (FSCS) coverage. This protection extends to £120,000 per individual in case of institutional failure.

The FSCS operates comparably to America’s FDIC system, which safeguards US banking deposits up to $250,000. Previously, Revolut users lacked such protection on their primary account balances.

During migration, account identifiers including account numbers, sort codes, and IBAN information remain unchanged. Historical transaction records and account statements stay accessible within the application.

Savings deposits continue being maintained with affiliated banking institutions. Each partner institution provides independent FSCS coverage thresholds, distinct from the new banking division.

Cryptocurrency and Equity Services Stay in Separate Entities

Cryptocurrency transactions, equity trading, and commodity services will not transfer into the banking division. These offerings continue functioning through distinct Revolut entities governed by alternative regulatory structures.

The banking entity plans future expansion into lending products and additional financial services. Revolut indicated the license establishes groundwork for a “wider range” of product offerings.

Revolut submitted an application for federal banking charter status in the United States during January. A concurrent application for Peruvian banking authorization was filed simultaneously.

The American charter pursuit aligns with broader industry patterns of cryptocurrency and fintech enterprises pursuing conventional banking credentials. Revolut enters a limited group of fintech companies working toward full banking operations spanning multiple countries.

The UK authorization represents Revolut’s most significant regulatory achievement thus far. Complete transition of British customer accounts is projected to require several months for completion.

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