- Users will earn 1% yields on Bitcoin.
- The move underscores the UK’s positioning as a crypto hub.
Xapo Bank has officially debuted a combined interest-bearing US dollar and Bitcoin (BTC) banking accounts in the UK. The launch happened after the Gibraltar-based bank successfully obtained a local banking license.
Xapo customers can send up to £1 million or approximately $1.28 million and make payments to UK-based bank accounts and wallets. The Bitcoin accounts give 1% yields without staking, lending, or locking up assets. The bank became the first and only bank in the UK to launch interest-bearing Bitcoin and fiat banking accounts.
Xapo Bank CEO Seamus Rocca described the UK license as “no easy feat,” emphasizing that the institution is eager to expand local membership. He 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.”
Users with Bitcoin accounts can spend the crypto “like fiat,” with a “universally accepted” debit card. They can also invest in other financial services such as S&P 500 stocks and select cryptocurrencies. Xapo Bank also integrated stablecoin payments with its US dollar bank accounts.
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Global Hub For Crypto Innovation
Xapo Bank’s expansion comes even as the UK positions itself in the crypto and blockchain sector. Echoing the sentiments, the bank said:
“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, the bank’s director and head of regulatory and public affairs, called the UK market unique. This comes even as the Financial Conduct Authority estimates that about 10% of UK adults held cryptocurrencies in 2023.
