The Financial Conduct Authority (FCA) said Revolut had been chosen along with three other companies to test how stablecoin products could be marketed and regulated in a safe environment.

A stablecoin is a type of cryptocurrency designed to maintain a steady value by ‘pegging’ its price to a stable reserve asset, such as the US dollar or gold, according to the Bank of England.

Stablecoin differs from crypto assets, like Bitcoin, whose value tends to move a lot in a short space of time because they are not backed by real assets.