Xapo Bank Expands into the UK
Xapo Bank, a Bitcoin-focused institution, has announced its expansion into the United Kingdom, according to an Aug. 5 statement shared with CryptoSlate.
The firm stated that the move makes it the first licensed bank in the UK to offer a combined interest-bearing account for fiat and Bitcoin.
The expansion follows the successful transfer of Xapo’s banking license to the UK under the “passporting” scheme. This framework, facilitated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), allows firms from Gibraltar to extend their operations into the UK.
Seamus Rocca, CEO of Xapo Bank, remarked:
“We have successfully passported our banking license into the UK. 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.”
Xapo’s offering
Xapo’s new offering enables customers to transfer up to £1 million (about $1.275 million) to UK wallets and bank accounts.
The Bitcoin accounts provide a 1% yield without the need for staking or asset locking. Additionally, account holders can use their digital assets through a widely accepted debit card and access other financial services, including investing in S&P 500 stocks or purchasing select cryptocurrencies.
Xapo Bank has also integrated stablecoin payment options with its USD bank accounts.
Is the UK becoming more crypto-friendly?
Despite recent challenges for fintech companies securing UK banking licenses, regulators have issued two such licenses in the past two months. Xapo’s licensing follows a similar move by the firm Revolut, which recently received a new banking license from UK regulators.
Xapo believes these developments signal the UK’s active efforts to position itself as a leader in the crypto and blockchain sectors. The FCA reported that 10% of UK adults held cryptocurrencies in 2023.
Joey Garcia, Director and Head of Regulatory and Public Affairs at Xapo Bank, stated:
“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.”
