The CEO and co-founder of Revolut has asserted that choosing to list shares in the UK instead of the US is “not rational”, diminishing the likelihood that the UK government will persuade the esteemed fintech startup to pursue a London listing.

Nik Storonsky, aged 40, remarked that the London-based company will eventually look into going public to provide returns to its shareholders. However, he pointed out that the existing stamp duty on shares and reduced market liquidity make the UK less attractive for listings.

“When comparing the UK to the US, the UK market is significantly more illiquid, and trading in the US comes without fees. Thus, I find it challenging to see how the UK can compete with the offerings available in the US,” he stated during an appearance on the 20VC podcast.

“The lower liquidity in the UK results in a substantially less favorable scenario compared to the US. Additionally, the costs are higher due to stamp duty. Overall, it just doesn’t make logical sense,” he added.

When asked if he would pursue a US listing as a result, Storonsky responded: “Unless I receive a superior product offering from the UK, then yes. If the UK can present a better product, I would consider listing there.”

In August, Revolut attained a valuation of $45 billion through a share sale involving its employees, with Mubadala, the sovereign wealth fund from Abu Dhabi, among the investors.

Established in 2015, Revolut has grown from a foreign exchange service into a comprehensive financial services entity, offering features like share trading and savings solutions via its mobile application.

In July, the company finally obtained a banking license from UK regulators after a three-year wait, enabling it to begin lending operations within its home market and compete with established high street banks.

There have been assertions that delays in acquiring the banking license pressured Storonsky to move to Dubai; however, he clarified that although he spends time in the emirate and manages a significant team there, he does not reside there permanently.

The UK government, alongside industry leaders, is making efforts to invigorate the country’s capital markets through various reforms, such as pension consolidation and initiatives spearheaded by Julia Hoggett, CEO of the London Stock Exchange.

A recent report from Peel Hunt, an investment bank in the City of London, noted that strides have been made to enhance the UK market’s readiness, albeit emphasizing earlier this year that while the stamp duty on shares stands at a relatively low rate of 0.5 percent, it remains a “pernicious tax that negatively impacts the UK equity markets.”