UK Tries To Woo SoftBank-Backed Revolut For A London Listing Amid Fintech Giant's NASDAQ Plans

In the latest development, the U.K. Treasury is gearing up for discussions with Revolut, one of the most valuable fintech firms in Britain backed by SoftBank, to underscore the allure of London for a potential listing. This move comes amid Revolut’s ongoing contemplation of a New York listing.

What Happened: City Minister Tulip Siddiq is set to meet with Revolut in the coming autumn. The agenda of the talks is expected to encompass Revolut’s potential listing plans and broader issues concerning financial services and the City, Financial Times reported on Friday.

Revolut, having recently secured a crucial U.K. banking license, is projected to achieve a valuation of approximately $45 billion. Despite its London base, the fintech firm is leaning towards a Nasdaq listing in the U.S., as disclosed by an insider.

Revolut’s potential U.S. listing could pose a challenge for London, which has witnessed a series of companies relisting in New York. The fintech firm’s recent acquisition of a U.K. banking license, albeit with temporary restrictions, enables it to directly hold deposits and expand lending in the U.K.. This could potentially bolster its prospects of obtaining a license in the U.S. market.

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Revolut’s co-founders, Nikolay Storonsky and Vlad Yatsenko, have previously indicated a preference for a Nasdaq listing in the event of a flotation. However, Revolut executives have recently hinted at the possibility of a London IPO, thereby endorsing the City’s competitiveness as a business hub.

Why It Matters: Revolut’s journey to this point has been marked by significant milestones. In June, the fintech giant eyed a valuation of over $40 billion in an employee share sale. This move was aimed at solidifying its status as Europe's most valuable startup.

Earlier that same month, Revolut partnered with GTN to launch bond trading for European users. This was a step towards Revolut’s mission to build an all-in-one investment platform catering to both advanced and beginner users.

However, the fintech firm’s journey has not been without hurdles. In May, there were concerns that Revolut’s application for a U.K. banking license might be rejected. Despite these challenges, Revolut’s recent acquisition of a UK banking license marks a significant step forward.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari