In this post:
- Xapo Bank enters the UK market with combined interest-bearing USD and Bitcoin accounts.
- The Bitcoin accounts offer a 1% yield without requiring staking.
- This comes as the UK is becoming a crypto innovation hub with strong regulatory framework.
Private bank Xapo Bank, one of the first digital asset custodians has launched interest-bearing Bitcoin and fiat accounts in the UK, drawn by the strong regulatory framework in the UK.
The bank reportedly becomes the first to offer combined interest-bearing USD and Bitcoin accounts in the UK market, after gaining regulatory approvals for its operations. Xapo Bank announced its entry into the UK market on Monday after it had passed its license in the UK market.
Xapo Bank adds more payment options
The banking firm now offers US dollar and bitcoin to customers interested in holding the wallet. The bank officially launched in the UK with the bitcoin account offering a 1% interest without staking, lending or locking up assets, the bank revealed.
Xapo expanded its services in the UK including fiat accounts while customers can also invest in S&P 500, and bitcoin spending using a debit card. The bank has also reportedly added stablecoin payment options for the US dollar accounts.
“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.” Xapo Bank.
“Xapo bank members can also send funds directly, conveniently, and securely 24/7, up to 1 million GBP. They can also make direct payments to UK-based wallets and bank accounts,” added the bank.
UK’s regulatory framework attracted Xapo
Xapo CEO Seamus Rocca said attaining approval was not a walk in the park but has shown the company’s ability to meet the regulatory requirements as per UK standards.
“We are eager to expand our membership in the UK, assisting valuable members in diversifying their portfolio through bitcoin and wealth creation.” Rocca.
Xapo’s move has also been viewed as a nod of approval for UK’s laws. Director and head regulatory and public affairs Joey Garcia praised the UK’s regulatory framework, adding the bank’s presence will contribute towards shaping the future of digital financing in the region.
Since it was established in 2013, the bank has evolved from being a bitcoin wallet to a regulated digital-first retail banking firm under the Gibraltar Financial Services Commission.
While other fintech firms have faced challenges in attaining licensing from the UK regulators, this has not always been the case. Crypto-friendly app Revolut was granted a banking license to operate in the UK, a sign of the growing acceptance of fintech innovations in the country.
The UK has also continued to make strides towards establishing a regulatory sandbox for the crypto market. The Bank of England together with the Financial Conduct Authority (FCA) have been spearheading what is known as the Digital Securities Sandbox (DSS).
