London-based fintech unicorn Revolut announced that it has reached an agreement with Softbank to streamline its ownership structure to remove a hurdle in obtaining a much-needed banking license in the UK market.
The announcement comes after months of negotiations, known internally as “Project Swan,” during which SoftBank had demanded substantial compensation in exchange for giving up its priority class of shares, report FT.
To secure a UK banking license, a key requirement set by the Bank of England has been the consolidation of Revolut’s six classes of shares, the legacy of multiple funding rounds since it was founded in 2015.
The regulatory arm of the BoE holds authority over banking license approvals, which must also be signed off by the Financial Conduct Authority (FCA).