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Xapo Bank launches interest-bearing Bitcoin accounts in the UK

Tuesday 6 August 2024 08:16 CET | News

Bitcoin custodian and licensed private bank Xapo Bank has entered the UK market and has debuted its interest-bearing Bitcoin and fiat banking accounts.

 

Bitcoin custodian and licensed private bank Xapo Bank has entered the UK market and has debuted its interest-bearing Bitcoin and fiat banking accounts.

Gibraltar-based Xapo Bank has entered the UK market after obtaining its local banking license, becoming one of the first to offer combined interest-bearing US dollar and Bitcoin accounts, catering to users interested in holding Bitcoin.

Entering UK markets

According to the announcement, Xapo customers can also send funds of up to 1 million British pounds (USD 1.28 million) and make payments to UK-based wallets and bank accounts. The Bitcoin account yields 1% without staking, lending, or locking up assets.

Xapo said those with Bitcoin accounts are able to spend it ‘like fiat’ with a ‘universally accepted’ debit card, along with other financial services such as investing in S&P 500 stocks or acquiring select cryptocurrencies. Additionally, the bank has integrated stablecoin payment rails with US dollar bank accounts.

Officials from Xapo Bank said it was not easy to passport its banking license into the UK, though they are ‘eager’ to expand local membership. They called the access to the UK market ‘unique’ and an opportunity to share the future of digital finance. The UK is swiftly emerging as a global hub for cryptocurrency innovation, boasting a promising regulatory framework, a dynamic financial ecosystem, and a talent-rich environment.

UK crypto landscape

The UK has been active in trying to position itself as a prominent player in the crypto and blockchain space. The country’s Financial Conduct Authority estimated that 10% of adults in the UK held cryptocurrencies in 2023.

Xapo is not alone in being a new financial services provider to gain local authorisation for operations from UK regulators.

In July 2024, Revolut has obtained a UK banking license with restrictions from the Prudential Regulation Authority and is now in the 'mobilisation' stage, a common process for new banks. During this phase, the bank is limited to holding GBP 50,000 in total customer deposits, with no service disruptions for customers. Revolut NewCo, a subsidiary of Revolut Group Holdings, holds the license, while Revolut will continue serving UK customers until the bank's full launch.


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Keywords: online banking, Bitcoin, cryptocurrency, banking license, product launch
Categories: DeFi & Crypto & Web3
Companies: Xapo Bank
Countries: United Kingdom
This article is part of category

DeFi & Crypto & Web3

Xapo Bank

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