Gibraltar-based Xapo Bank has officially launched its services in the United Kingdom after obtaining a local banking license. This move allows the bank to offer new services tailored for users interested in holding Bitcoin alongside traditional banking.
On August 5, Xapo Bank announced its distinction as the first and only licensed bank in the UK that offers a dual account feature, combining interest-bearing US dollar and Bitcoin functionalities. The current Bitcoin price is noted at $55,895.
Unique Banking Features
Xapo Bank is setting itself apart by offering UK customers the ability to transfer up to one million British pounds (approximately $1.28 million) and make payments to other UK-based wallets and bank accounts. Notably, the Bitcoin account offers a 1% yield without the need for staking, lending, or locking up assets.
Below are some of the standout features of Xapo Bank’s services:
- Bitcoin Usability: Customers with Bitcoin accounts can spend their cryptocurrency “like fiat” using a universally accepted debit card.
- Investment Opportunities: Account holders can invest in S&P 500 stocks and select other cryptocurrencies.
- Stablecoin Integration: The bank has also integrated stablecoin payment rails with US dollar bank accounts, enhancing the flexibility of digital transactions.
Leadership Commentary
Seamus Rocca, CEO of Xapo Bank, acknowledged the challenges and expressed enthusiasm about the expansion, stating it was “no easy feat” to passport the banking license into the UK. The bank is keen on growing its local membership base.
Joey Garcia, the director and head of regulatory and public affairs at Xapo Bank, highlighted the uniqueness of their UK market access. He remarked on the UK’s growing prominence as a global hub for cryptocurrency innovation, citing its “promising regulatory framework, dynamic financial ecosystem, and talent-rich environment.”
UK’s Crypto Landscape
The UK has been proactive in positioning itself as a leader in the cryptocurrency and blockchain sector. According to the country’s Financial Conduct Authority, around 10% of UK adults held cryptocurrencies in 2023.
Xapo is not the only financial service provider making strides in the UK market:
- On July 25, the global neobank and fintech company, Revolut, obtained its UK banking license after a three-year regulatory process, reinforcing its position in its home market.
- In mid-July, the cryptocurrency exchange Kraken also expanded its custody services to UK customers, further indicating the region’s growing acceptance and facilitation of cryptocurrency-related services.
Xapo Bank’s entry into the UK market not only broadens the financial options available to customers but also signifies the increasing integration of cryptocurrency into mainstream financial systems. As digital currencies continue to evolve, the landscape of banking and investments is likely to transform, offering more dynamic and flexible financial solutions.
| Feature | Details |
|---|---|
| Dual Account | Interest-bearing USD and BTC |
| Transfer Limit | Up to £1 million |
| Yield on BTC | 1% without mandatory staking or locking |
| Investment Options | S&P 500 stocks, select cryptocurrencies |
| Stablecoin Integration | Linked with USD accounts |
| Debit Card | Universally accepted for BTC and fiat spending |
The comprehensive services provided by Xapo Bank demonstrate a significant development in blending traditional banking with the burgeoning field of digital currencies, providing users with a versatile and modern banking experience.
Featured image credit: Freepik
Follow us for more breaking news on DMR