Revolut obtains full UK banking license, deposits will be protected up to £120,000, crypto accounts remain independently operated

On March 12, London-based fintech company Revolut officially received a full banking license in the UK, approved by the Prudential Regulation Authority (PRA). With the license granted, Revolut has established a new banking entity, Revolut Bank UK Ltd., to handle related operations. UK customer accounts will be gradually migrated to the new banking system over the coming months.

This approval marks a significant milestone in Revolut’s years-long regulatory application process. The company first obtained a restricted banking license in the UK in 2024 and entered the so-called “mobilization phase,” a standard transition period before full operational status. Currently, the company has over 10 million customers in the UK and, after completing its latest funding round, is valued at approximately $75 billion.

Under the new license, eligible customer deposits will be protected by the Financial Services Compensation Scheme (FSCS). In the event of bank insolvency, the scheme can compensate up to £120,000 per customer. This mechanism is similar to the Federal Deposit Insurance Corporation (FDIC) in the United States. Previously, Revolut’s main account balances did not have such protection.

Account migration will be carried out in phases. When a user’s account is ready to transfer to the new system, Revolut will notify them via email or app. The company states that during the migration, account numbers, sort codes, and IBAN information will remain unchanged, and historical transaction records and statements will still be accessible within the app.

It is important to note that cryptocurrency trading, stock investments, and commodities trading services on the Revolut platform will not be included in the new banking entity. These services will continue to operate through separate subsidiaries under different regulatory frameworks. Therefore, the new banking license primarily affects deposit accounts and potentially future offerings such as loans and traditional financial products.

Revolut has stated that this license provides greater regulatory flexibility for expanding financial services, including loans, savings, and other banking activities. In January, Revolut also applied for a federal banking license in the United States and is pursuing a similar license in Peru.

Industry experts believe that Revolut’s pursuit of a banking license reflects a broader trend of fintech companies gradually integrating into the traditional banking system. With enhanced regulatory status, such platforms are expected to play a more significant role in payments, digital asset services, and cross-border financial operations. The full migration of UK customer accounts is expected to be completed within the next few months.