Xapo Bank launches interest-bearing Bitcoin accounts in the UK offering unique financial services.
Customers can send funds and make payments to UK wallets and bank accounts with Xapo Bank.
The UK is emerging as a hub for cryptocurrency innovation with a strong regulatory framework.
Xapo Bank, a private bank and Bitcoin custodian, has launched interest-bearing Bitcoin and fiat accounts in the UK. The Gibraltar-based bank entered the UK market after securing its banking license. It now offers US dollar and Bitcoin accounts for users interested in holding Bitcoin.
Unique Financial Services
Xapo Bank lets customers send up to 1 million British pounds and make payments to UK wallets and bank accounts. The Bitcoin account offers a 1% yield without requiring staking or locking assets. Customers can spend Bitcoin like regular money with a universally accepted debit card. They can also invest in S&P 500 stocks or buy select cryptocurrencies. The bank has added stablecoin payment options for US dollar bank accounts.
https://twitter.com/Crypto_TownHall/status/1820438945609715900
Xapo Bank officials noted challenges in getting its banking license in the UK. They are eager to expand membership locally. The UK market presents a chance to share the future of digital finance. The UK is becoming a hub for cryptocurrency innovation with a strong regulatory framework and financial ecosystem.
Integration with the UK Market
Xapo Bank's UK offerings include spending Bitcoin via a debit card. Customers can make GBP payments to UK bank accounts, invest in the S&P 500, acquire select cryptocurrencies, and use stablecoin payment rails for USD bank accounts.
Fintech firms seeking banking licenses in the UK have faced challenges recently. Yet Revolut, a crypto-friendly finance app, received a new banking license from UK regulators. This reflects growing acceptance of fintech innovations in the UK.
Regulated by the Gibraltar Financial Services Commission since 2021, Xapo Bank expanded services in the UK. It is now officially recognized as a UK-regulated bank, marking a key step for offering financial services to UK customers.
UK Crypto Landscape
In July 2024, Revolut got a UK banking license with restrictions from the Prudential Regulation Authority. It is now in the 'mobilization' stage, a standard process for new banks. During this phase, the bank is limited to holding GBP 50,000 in total customer deposits with no service disruptions for customers. Revolut NewCo, a subsidiary of Revolut Group Holdings, holds the license. Revolut continues to serve UK customers until the bank's full launch.
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