Xapo Bank Pioneers Interest-Bearing Bitcoin and USD Accounts in UK Market

Xapo Bank, a Gibraltar-licensed digital banking institution, has made a significant entry into the United Kingdom’s financial landscape by becoming the first licensed bank to offer a combined interest-bearing USD and Bitcoin (BTC) account. This milestone comes as the UK positions itself as a potential leader in crypto and blockchain technology, with recent estimates suggesting that 10% of UK adults held cryptocurrency in 2023.

The bank’s expansion into the UK market follows the successful passporting of its banking license, a notable achievement in a regulatory environment where major fintech companies have struggled to secure such approvals. Xapo Bank’s offering includes the ability to send funds up to 1 million GBP directly to UK-based wallets and bank accounts, available 24/7.

Seamus Rocca, CEO of Xapo Bank, stated, “We’re proud to announce we have successfully passported our banking license into the UK. This means we are allowed to offer our banking services directly to the UK market. Achieving this is no easy feat and shows we meet the UK’s high regulatory standards.”

One of Xapo Bank’s key offerings is a Bitcoin account that yields 1% interest without requiring staking, lending, or asset lockups. Members can spend Bitcoin using a universally accepted debit card, invest in S&P 500 stocks, or acquire select cryptocurrencies. The bank also integrates stablecoin payment rails with USD bank accounts, bridging the gap between traditional banking and digital assets.

Founded in 2013, Xapo Bank has evolved from a Bitcoin wallet to a fully-fledged digital retail bank and Virtual Asset Service Provider (VASP) custodian. It guarantees USD deposits up to the equivalent of €100,000, providing a level of security associated with traditional banking institutions.

Joey Garcia, Director and Head of Regulatory and Public Affairs at Xapo Bank, commented on the UK’s potential, saying, “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.”

This development comes at a time when the UK is working towards regulatory clarity for crypto firms, with the Treasury publishing proposals for future crypto regulation. Despite some firms exiting the market due to new FCA crypto advertising rules, the UK remains committed to fostering cryptocurrency innovation.