Xapo Bank, a pioneering player in the digital asset custody space, is making waves with its latest offering in the UK market. Known for its early adoption of digital asset management, Xapo Bank has just launched interest-bearing accounts for both Bitcoin and fiat currencies, making it the first in the UK to combine these features.
On Monday, Xapo Bank officially announced its entry into the UK financial landscape after securing the necessary regulatory approvals. This marks a significant milestone as the bank becomes the first to offer combined USD and Bitcoin accounts in the UK. The new service allows customers to hold both currencies in accounts that accrue interest, a feature previously unavailable in this form in the region.
Xapo Bank’s UK launch includes an interest-bearing Bitcoin account offering a 1% return without requiring staking, lending, or locking up assets. This feature is designed to attract those looking to earn interest on their Bitcoin holdings while maintaining liquidity. Additionally, the bank has expanded its services to include fiat accounts with options to invest in the S&P 500 and spend Bitcoin using a debit card. The inclusion of stablecoin payment options for USD accounts further enhances the versatility of Xapo’s offerings.
Seamus Rocca, CEO of Xapo, expressed satisfaction with the company’s successful licensing process in the UK, emphasizing the rigorous standards the bank met. “Attaining approval was challenging, but it demonstrates our ability to meet the UK’s high regulatory standards,” Rocca said. He added that the bank is enthusiastic about growing its UK membership and helping clients diversify their portfolios through Bitcoin and other investment opportunities.
Joey Garcia, Director and Head of Regulatory and Public Affairs at Xapo, praised the UK’s regulatory framework, viewing it as a positive step for digital finance. Garcia noted that Xapo’s presence in the UK will contribute to shaping the future of digital banking and finance in the region. The UK’s regulatory environment, which includes initiatives like the Digital Securities Sandbox (DSS) spearheaded by the Bank of England and the Financial Conduct Authority (FCA), continues to foster innovation and acceptance of fintech solutions.
Xapo Bank’s expansion into the UK also highlights the country’s growing acceptance of fintech innovations. The UK’s strong regulatory framework has proven attractive to digital and crypto-friendly firms, as seen with the licensing of other fintech companies like Revolut. This trend indicates a favorable environment for the integration of digital assets into traditional banking systems.
Since its inception in 2013, Xapo has evolved from a Bitcoin wallet provider to a regulated digital-first retail banking institution under the Gibraltar Financial Services Commission. This transition reflects the bank’s adaptability and commitment to expanding its services in the digital financial sector.
With its new offerings, Xapo Bank aims to provide a seamless and secure way for customers to manage and grow their assets, blending traditional and digital finance. The introduction of interest-bearing accounts for both Bitcoin and fiat currencies represents a significant advancement in the UK’s financial landscape, setting a precedent for future innovations in the sector.
