Xapo Bank has become the first regulated financial institution in the UK to offer an interest-bearing account that combines both U.S. dollars and Bitcoin, following the successful passporting of its banking license to the country.
Back in the UK
Xapo Bank, a digital bank licensed in Gibraltar and known for its focus on cryptocurrency, now provides UK users with a quite unique offering.
Customers can send up to £1 million GBP to UK wallets and bank accounts, with services available 24/7.
CEO Seamus Rocca highlighted the importance of this achievement, noting that it demonstrates Xapo Bank’s compliance with the stringent regulatory standards in the UK.
Founded in 2013, Xapo Bank evolved from a Bitcoin wallet service into a full-fledged digital retail bank and Virtual Asset Service Provider custodian.
A flagship feature of Xapo Bank’s new services is its Bitcoin account, which offers 1% interest without requiring users to stake, lend, or lock up their assets.
JUST IN: XAPO BANK REPORTEDLY BECOMES THE FIRST UK BANK TO OFFER INTEREST-BEARING BITCOIN ACCOUNTS
— BSCN Headlines (@BSCNheadlines) August 5, 2024
Additionally, members can access Bitcoin through a globally accepted debit card, invest in S&P 500 stocks, or purchase select cryptocurrencies.
Innovative, friendly business regulation for crypto
Joey Garcia, Director and Head of Regulatory and Public Affairs at Xapo Bank, shared that the UK’s growing reputation as a global hub for cryptocurrency innovationis appealing, citing its favorable regulatory framework, robust financial ecosystem, and wealth of talent.
Xapo Bank’s entry into the UK market comes amid a period of a pretty big turbulence in the broader cryptoindustry.
Bitcoin dropped to $50,000, in the last week, its lowest level since February 2024, while other major cryptocurrencies like Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), and Solana (SOL) also experienced declines of around 15% in the past day.
Red alert
The crypto market has been further unsettled by an actual exodus of digital asset investments, with outflows totaling $528 million last week—the first such downturn in four weeks.
This mass withdrawal is largely attributed to rising concerns about a potential recession in the United States, boosted by geopolitical tensions and widespread liquidations across various asset classes.
The Bank of Japan’s decision to raise interest rates for the first time in 17 years due to concerns over the Yen’s declining purchasing power against the U.S. dollar has added to market jitters, triggering sell-offs in riskier assets.
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