Xapo Bank Enters UK Market With New Bitcoin Services

Gibraltar-based Xapo Bank has successfully obtained a local banking license and officially entered the UK market. On August 5, the bank announced that it is the first and only licensed bank in the UK to offer a combined interest-bearing USD and Bitcoin account.

1% yield without staking

With the new services, Xapo customers can now transfer funds up to GBP 1 million (USD 1.275 million) and make payments to UK wallets and bank accounts. The Bitcoin account offers a 1% yield without requiring users to stake, lend or lock up assets.

Customers can use their Bitcoin accounts as if they were fiat currency, using a “universally accepted” debit card. Additionally, Xapo offers investment opportunities in S&P 500 stocks and select cryptocurrencies. Stablecoin payment rails are also integrated with USD bank accounts.

Obtaining a banking license proved to be a challenging task

Seamus Rocca, CEO of Xapo Bank, stressed that obtaining the banking license in the UK was a challenging task, but that the company is excited to expand its local presence. Joey Garcia, director and head of regulatory and public affairs at Xapo Bank, described the access to the UK market as “unique” and an opportunity to share the future of digital finance.

“The UK is rapidly developing into a global hub for cryptocurrency innovation, with a promising regulatory framework, a vibrant financial ecosystem and an environment rich in talent,” said Garcia.

UK has positioned itself as a crypto world leader

The UK has been actively positioning itself as a global leader in the crypto and blockchain sector. According to recent estimates from the Financial Conduct Authority (FCA), around 10% of UK adults will own cryptocurrencies by 2023.

Xapo Bank isn’t the only financial services company to recently receive approval from U.K. regulators. On July 25, global neobank and fintech company Revolut received its U.K. banking license following a three-year regulatory process, cementing its position in its home market. Additionally, cryptocurrency exchange Kraken announced in July that it would expand its custody services in the U.K.