Xapo Bank Granted Full License To Support USDC Deposits And Withdrawals
Xapo Bank has partnered with Circle, a fintech company, to become the first fully licensed bank to offer USDC payment rails as an alternative to SWIFT. The move enables Xapo Bank members to bypass costly and time-consuming SWIFT payments and instead deposit and withdraw via the stablecoin with no fees charged by Xapo Bank. The bank is also offering a 1:1 conversion rate from USDC to USD, and all USDC deposits are automatically converted to USD, meaning members can benefit from a 4.1% annual interest rate return on deposits.
Xapo Bank has collaborated with Circle and claims to become the first licensed bank in the world to integrate USDC payment rails as an alternative to SWIFT. Xapo Bank is a member of the Gibraltar Deposit Guarantee Scheme. https://t.co/GpXfQUzzlX
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Game-Changer for Crypto Transactions
This innovative move by Xapo Bank is significant as it marks a watershed moment in financial history, combining the speed and cost efficiency of the digital dollar with the security guarantees of a licensed private bank. The USDC payment rails run 24/7, eliminating the anxiety of keeping money in exchanges and the hassle of expensive off-ramps into traditional banks.
Seamus Rocca, the CEO of Xapo Bank, explained that the bank was built to protect members’ savings. Unlike many traditional banks, Xapo does not offer customer loans and instead holds all its customers’ funds in reserve and invests them in short-term liquid assets. By doing so, it is able to pass the benefit of that interest earned onto its customers in the form of a 4.1% interest rate, paid daily. Xapo Bank charges a membership fee of $150 USD to cover overheads, meaning it does not have to rely on hidden fees or pay almost no interest to its customers.
Gibraltar Deposit Guarantee Scheme
Xapo Bank is a fully licensed and regulated bank and a member of the Gibraltar Deposit Guarantee Scheme, which guarantees members’ USD deposits up to $100,000 USD equivalent. The bank does not engage in staking of any crypto deposits and does not have any exposure to surrounding crypto markets, as all deposits are automatically converted to USD held by the bank.
FPS Integration
Xapo Bank is constantly striving to grow its payment rails options, offering members additional currency choices managed with the security of a fully-regulated bank. Last week, the bank integrated with the Faster Payment System (FPS) to activate support for GBP settlement for account deposits and withdrawals. It also announced an integration with Bitcoin’s Lightning Network, in collaboration with Lightspark, earlier this month.
Xapo Bank’s integration of USDC payment rails is a game-changer in the financial industry, providing members with a fast, secure, and cost-effective way to deposit and withdraw funds. As the bank continues to expand its payment rail options and currency choices, it is setting itself up as a leader in the world of digital banking.
