Xapo Bank, based in Gibraltar, has successfully expanded into the UK market by transferring its banking license to the country. As a result of this action, Xapo Bank is now the first UK bank to provide accounts that offer interest on both Bitcoin (BTC) and fiat, meeting the increasing need for cryptocurrency services in addition to conventional banking offerings.
Xapo Bank Provides Interest-Bearing BTC and Fiat Accounts
Interestingly, customers can now access interest-bearing accounts in Bitcoin and standard currencies. This allows them to spread their investments and make money on their holdings. As per the release, Xapo Bank will provide a 1% interest rate on Bitcoin without requiring customers to stake, lend, or lock up their assets.
Meanwhile, Xapo’s debit card will allow users to spend their Bitcoin. They can also send direct GBP payments to UK bank accounts, invest in S&P 500 stock, acquire select cryptocurrencies, and access stablecoin payment rails with USD bank accounts.
Xapo Bank has strategically brought its banking license to the UK, allowing it to grow and provide special services to more people. The Financial Conduct Authority (FCA), the Bank of England (BoE), the Prudential Regulation Authority (PRA), and the Gibraltar authorities made this banking license possible.
Circle Collaborates With Xapo Bank
Last year, Circle, a crypto financial services firm, abandoned the SWIFT payment platform and collaborated with Xapo Bank. As reported by TheCoinRise, Circle will work with Xapo Bank to incorporate USDC stablecoin payment rails as a SWIFT substitute. Interestingly, the partnership made Xapo Bank the first licensed bank globally to integrate USDC payment rails.
Under the agreement, customers will deposit and withdraw money using the stablecoin with no fees from Xapo Bank, thus avoiding expensive and time-consuming SWIFT payments. Additionally, the bank offers a 1:1 exchange rate from USDC to USDD. The USDC deposits will be converted to USD, giving members a 4.1% annual interest rate return on savings.
Meanwhile, the CEO of the bank, Seamus Rocca stated that the auto-converted USDC deposits and withdrawals at Xapo would give users a haven for their savings. Also, he assured users that the platform would be available 24/7, including weekends.
UK Greenlights Stablecoin Regulation
Recall that in April, the United Kingdom started preparing for the introduction of new stablecoin regulations and guidelines for other crypto asset activities. According to the Economic Secretary Bim Afolami at the Innovative Finance Global Summit, the move will bring operations such as running an exchange, managing customer assets, and other related activities under a regulatory framework.
In addition to stablecoins, the legislation will impact crypto asset activities such as staking, exchange, and custody services. Under these new regulations, these activities will comply with specific rules to ensure security and transparency for investors.
Likewise, in response to the UK’s treasury consultation on a concise regulatory regime for crypto assets, the government published a detailed final proposal for regulating digital assets and related offerings in the region. The government believes that firms dealing directly with UK retail consumers should be authorized irrespective of their location.
The post Bitcoin-Friendly Xapo Bank Passported its Banking License Into the UK appeared first on TheCoinrise.com.
