UK Edition
Banking app Revolut extends cryptocurrency push with Ripple and Bitcoin Cash investments
British banking app Revolut is is extending a push into cryptocurrencies, despite the Bitcoin boom subsiding and traditional lenders distancing themselves from the market.
The company, which last year became the first banking app to let customers invest in Bitcoin, said it would add both Ripple and Bitcoin Cash, which are the third and fourth-most popular cryptocurrencies by market value.
It says “hundreds of thousands” of its 1.8m customers have chosen to invest in virtual currencies since December, when it launched the service.
The price of Bitcoin has slumped by 60pc since its high in December, with other virtual coins such as Ethereum and Litecoin also dropping significantly.
Banks including Lloyds and Virgin Money have restricted cryptocurrency purchases, banning customers from using credit cards to buy them, amid fears about their volatile prices and uncertain legal status.
Revolut is one of a handful of app-only banking services that allow customers to transfer money instantly and into different currencies without heavy fees. The company, founded four years ago by former Lehman Brothers and Credit Suisse trader Nikolay Storonsky, recently raised $250m (£187m) at a $1.7bn valuation.
Vlad Yatsenko, its chief technology officer, said demand for both the Ripple and Bitcoin Cash currencies had been “overwhelming” despite the cryptocurrency boom waning.
Ripple, a previously obscure digital currency, saw its price increase 37,000pc in 2017, leading its value to close in on Bitcoin and briefly making its founder Chris Larsen the fifth-richest man in the world. Its value has fallen by 85pc since.
Bitcoin Cash was created last year when Bitcoin itself was split in two amid disagreements between the cryptocurrency's users. Supporters claim it allows faster transaction times, making it more valuable as a payment method.
Revolut does not allow customers to own cryptocurrency outright, but buys and holds them on their behalf, which allows people to invest without the technical know-how and slow transaction times often associated with Bitcoin.
Mr Yatsenko said it was “a simple way for consumers to get exposure”.