Crypto-finance: Europe’s best route to counter Revolut’s dominance
Revolut’s rapid growth — 65 million users by Sept 2025 and a target of 100 million by mid-2027 — has narrowed the window for European-scale fintech challengers. The article argues that competing directly with Revolut is impractical, but Europe’s regulatory shift (Markets in Crypto-Assets, MiCA), cheaper engineering talent, rising stablecoin use, and returning venture capital create a defensible opportunity: build crypto-finance champions instead. MiCA provides clearer compliance frameworks, raising trust internationally and turning licenses into tangible balance-sheet value. Europe’s lower hiring costs and available skilled staff (including ex-Revolut engineers) improve unit economics. Funding recovered in 2025, with year-to-date fintech funding ~€6.3bn by September, and a portion flowing into crypto as institutionalization increases. The author expects 2026 to be a year of stablecoin rails and broader bank pilots for euro-denominated stablecoins, while noting remaining gaps in compliance, taxation, and crypto-specific regulatory guidance. Recommendation to founders: avoid head-on fintech competition with Revolut and pursue crypto-finance products (stablecoins, crypto remittance, regulated services) that can scale pan-Europe and globally.
Bullish
The article highlights structural developments that should support crypto markets in Europe: regulatory clarity from MiCA, rising stablecoin demand, improving VC funding, and favorable cost dynamics for talent. Those factors collectively increase institutional and retail adoption prospects for regulated crypto products (especially euro stablecoins and B2B payment rails). Historically, clearer regulation and bank pilots (e.g., US OCC guidance or EU pilot programs) have led to funding inflows, product launches, and higher on-chain activity — all bullish signals. Short-term: the market may see positive sentiment around euro-stablecoin projects, token pairs tied to payments rails, and equities of infrastructure providers, but price moves could be modest as adoption takes time and regulatory gaps remain. Long-term: if MiCA-compliant stablecoin rails and bank integrations scale, this could materially expand transaction volume and custody demand in Europe, supporting higher valuations for related tokens and infrastructure services. Risks that could temper the bullish view include unresolved tax/compliance details, uneven national regulator implementation, and competition from global players; these could cause periodic neutral or corrective price action but are unlikely to fully negate the structural upside.