U.K.-based mobile finance and payment application Revolut has unveiled a new feature that allows its customers to “auto-exchange” cryptocurrencies and fiat on its platform.
The new service is offered to enable users to protect themselves against crypto market volatilities. According to the firm’s blog post, Revolut clients can automatically exchange “fiat currencies, such as the US dollar (USD) to ether (ETH) or bitcoin (BTC), to XRP,” and vice versa, based on a target rate that is predetermined.
Users can set it up in easy steps—go to the Rates page in the app, choose the currencies, and then set the target price you desire to exchange them for. The app will do the next steps from there.
The app will enforce the exchange automatically once the present exchange rates match the target. However, there won’t be a conversion if the current exchange rate doesn’t hit the target price.
Revolut gave some warnings though—because of exchange rate fluctuations, it is possible that the closed rates are slightly different from the target rates.
“Just remember we can’t guarantee that you’ll receive the rate you request, but we’ll try to get the price as close to your target as we can,” Revolut added.
As a general rule, no trade will be executed once the exchange rate skews above 0.75 percent for fiat and 5 percent for cryptocurrencies on either side of your target rate.
However, the service has a daily exchange cap. Clients are limited to exchange fiat to crypto up to €10,000 (approximately $11,198 USD) per day. In addition, clients can only set up to 30 auto-exchange transactions daily.
Another limitation is the number of available currencies for conversion. Initially, the auto-exchange feature supports fiat currencies USD, GBP, and EUR, together with cryptocurrencies bitcoin (BTC), XRP, and ether (ETH).
Revolut began to offer trading services for digital assets in July 2017. In 2018, the firm announced commission-free trading, similar to Robinhood, on its platform.
The feature is slated to be rolled out later this year.