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Robinhood, the well-known U.S. investing app, and London-based crypto-friendly neobank Revolut, are getting serious about stablecoins. Word on the street says both fintech behemoths are considering launching their own stablecoins soon. The news? It came from unnamed sources speaking to Bloomberg, sparking chatter across the DeFi ecosystem.

Right now, Tether (USDT) rules the stablecoin jungle with its massive $119 billion market cap. That’s 68% of the entire stablecoin market, which sits at $173.5 billion overall. The question on everyone’s mind is: Can Robinhood and Revolut carve out a slice of this pie, or will they face the same hurdles that other giants couldn’t overcome?

Stability Battle: Will They Shake the Market?

Europe seems to offer a more straightforward regulatory landscape, especially compared to the patchwork found in other regions. Robinhood and Revolut may see this as their moment to step into the ring. However, just thinking about stablecoin issuance doesn’t mean they’ll succeed. The market has already seen big names like PayPal enter, only to hit a wall. PayPal’s PYUSD, even with its strong brand, holds just $710 million in supply—a mere speck next to Tether.

The hurdles are real. Stablecoin issuance requires liquidity. Robinhood has already tested these waters by listing Circle’s USDC. That’s the second-largest stablecoin, holding a $36.3 billion market cap. Revolut, on the other hand, has also been upping its crypto game, offering staking services for Ethereum. So, these fintechs aren’t entering blindly. But the path to success isn’t paved just yet.

Market Analysts Weigh In: It Won’t Be Easy

Fred Schebesta, founder of Finder.com, shared his perspective on this potential move. He said, “Revolut and Robinhood definitely have a shot at making a dent in USDT’s dominance, but it’s going to take a lot of integration.” The reality? People trust USDT, for reasons not always logical, but ingrained. Even PayPal hasn’t gained traction, which doesn’t bode well for other entrants.

Meanwhile, Pav Hundal, a market analyst at Swyftx, emphasized that scale is everything. Stablecoins thrive on volume, and Hundal believes Robinhood and Revolut have the reach.