Xapo Bank announced that it has added three cryptos to its platform: Ethereum (ETH), Cardano (ADA) and Polygon (MATIC).
Prior to 2018, the bank—which obtained a complete banking license in Gibraltar—only permitted its clients to retain fiat currencies, including US dollars and British pounds, as well as Bitcoin and stablecoins like USDC and Tether.
According to Xapo CEO Seamus Rocca, the company wants to give its customers a “one-stop shop” for investing in digital assets by branching out into other well-known cryptocurrencies like ETH, ADA, and MATIC.
“Although Xapo is best known for providing Bitcoin Custody Services, we cannot ignore member demand and therefore we are giving access to other prominent cryptocurrencies”
Through Gibraltar’s deposit insurance scheme, Xapo Bank ensures cryptocurrency deposits of up to $100,000 and keeps its customers’ money in segregated accounts.
The bank claims that institutional-grade security is provided by its multi-party computation (MPC) system, which shards encryption keys into fragments across several sites.
The decision is made amid a sharp increase in cryptocurrency values this year, with Bitcoin climbing from $16,550 at the start of the year to $37,500 now. The prices of Ethereum and other well-known cryptocurrencies have increased similarly.
Xapo is placing a wager on the rising long-term demand for digital assets. Customers of the bank are allowed to keep stablecoins and invest in US stocks in addition to the new cryptocurrencies.