Xapo Bank, a Gibraltar-licensed digital banking for crypto, has expanded its operations into the United Kingdom. It has become the first licensed bank in the country to offer a combined interest-bearing USD and Bitcoin (BTC) account. This move comes as the UK positions itself as a potential leader in crypto and blockchaintechnology, with recent estimates suggesting that 10% of UK adults held cryptocurrency in 2023.
Xapo Bank Brings Interest-Bearing Bitcoin and USD Accounts to UK Market
The bank's entry into the UK market follows the successful passporting of its banking license. It is an important 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.
“We're proud to announce we have successfully passported our banking license into the UK,” Seamus Rocca, CEO of Xapo Bank, stated. “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.”
Founded in 2013, Xapo Bank has evolved from a Bitcoin wallet to a fully-fledged digital retail bank and VASP custodian. It guarantees USD deposits up to the equivalent of €100,000, providing a level of security associated with traditional banking institutions.
One of Xapo Bank's 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.
“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,” Joey Garcia, Director and Head of Regulatory and Public Affairs at Xapo Bank, added.
What's Happening in the Crypto Industry
Xapo has secured a new license just as one of the largest cryptocurrency exchanges by volume exits a key European jurisdiction. Last week, Bybit announced it would close all existing customer positions by mid-August due to regulatory pressures.
This move by Bybit followed a warning from the French financial watchdog, Autorité des Marchés Financiers (AMF), last May. The regulator pointed out that the exchange had been operating in France without proper authorization, despite being blacklisted two years earlier.
Meanwhile, Marathon Digital Holdings, the largest Bitcoin miner on Wall Street, has been fined $138 million. A federal court ruled that Marathon had violated a non-disclosure and non-circumvention agreement with Michael Ho, the Chief Strategy Officer of Hut 8, a direct competitor.
Additionally, Riot Platforms, the third-largest Bitcoin mining firm by market cap, recently announced its acquisition of Kentucky-based Block Mining for $92.5 million. This significantly increases Riot's hash rate and extends its operational reach from Texas into new energy markets.
This article was written by Damian Chmiel at www.financemagnates.com.
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