Xapo Bank becomes the first bank in the United Kingdom to introduce interest-bearing Bitcoin and fiat banking accounts.
Xapo Bank, based in Gibraltar, has officially entered the United Kingdom market after securing its local banking license.
However, the bank is introducing new banking services to accommodate users who seek to hold Bitcoin.
Xapo Bank revealed on August 5 that it is the sole licensed bank in the UK to offer a banking account that combines interest-bearing United States dollars and Bitcoin banking account.
Market Entry in the UK
The announcement also states that Xapo customers can send funds of up to 1 million British pounds ($1.28 million) and make payments to UK-based wallets and bank accounts.
The Bitcoin account earns 1% without staking, lending, or locking up assets.
Xapo stated that individuals with Bitcoin accounts may spend it “like fiat” with a “universally accepted” debit card, along with other financial services, such as investing in S&P 500 stocks or acquiring select cryptocurrencies.
Xapo Bank has also integrated stablecoin payment channels with US dollar bank accounts.
Seamus Rocca, CEO of Xapo Bank, stated that it was “no easy feat” to transfer its banking license into the UK, however they are “eager” to boost local membership.
Joey Garcia, the director and head of regulatory and public affairs at Xapo Bank, characterized the access to the UK market as “unique” and an opportunity to share the future of digital finance.
“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.”
UK Crypto Prospects
The UK has been working hard to establish itself as a world leader in the crypto and blockchain space.
The UK’s Financial Conduct Authority recently estimated that 10% of adults in the country held cryptocurrencies in 2023.
Xapo is not the only new financial services provider to gain local authorization for operations from UK regulators.
Following a three-year regulatory process, Revolut, a global neobank and fintech company, secured its UK banking license on July 25.
This achievement was a significant milestone for the UK-based organization, as it solidified its position in its home market.
In addition, Kraken, a cryptocurrency exchange, announced in mid-July that it would be expanding its custody services to clients in the UK.
