Xapo Bank,
a Gibraltar-licensed digital banking for crypto, has expanded its operations
into the United Kingdom, becoming 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 blockchain
technology, 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, 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 acquisition 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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