London, U.K. — Revolut co-founder and CEO Nik Storonsky has expressed a clear preference for listing the fintech giant in the U.S. over the U.K., citing the latter’s uncompetitive trading conditions. Speaking on the 20VC podcast, Storonsky highlighted liquidity and cost disparities between the two markets, particularly pointing out the 0.5% stamp duty tax on U.K. stock trades as a significant drawback.

“The U.S. is much more liquid, and trading is free,” Storonsky stated. “In the U.K., you always pay a stamp duty tax. It’s just not rational.”

While Revolut operates with stringent regulatory controls akin to those of public companies, Storonsky noted no immediate urgency for an IPO. However, he acknowledged that going public would eventually offer venture capital investors a more liquid market to sell their shares.

A Blow to London’s Financial Hub

Revolut’s potential move to list in the U.S. would deal a heavy blow to London’s stock market, which has already witnessed a wave of companies opting for international listings. Despite the U.K. government’s efforts to revamp the financial sector and attract high-profile IPOs, the reforms have been met with mixed reactions.

The stamp duty tax on U.K.-listed shares, a long-standing issue, has resurfaced as a contentious topic. Critics argue the tax incentivizes investors to divert funds to foreign markets. Recently, the new Lord Mayor of the City of London, Alastair King, advocated for its reassessment, stating:

“It cannot be logically correct that we do not pay tax on international stocks like Tesla but are taxed for investing in British brands like Aston Martin.”

Revolut’s Market Prospects

Valued at $45 billion in a recent secondary share sale, Revolut’s growth and global ambitions have fueled speculation about a blockbuster IPO. Its decision to list in the U.S. could set a precedent for other U.K.-based companies, further undermining London’s position as a financial hub.

While London grapples with structural changes, Storonsky’s remarks underscore a broader challenge for policymakers: making the U.K. market globally competitive amid shifting economic and investor priorities.