Gibraltar-based Xapo Bank has entered the UK market after successfully securing a local banking license, becoming the first bank in the country to offer interest-bearing Bitcoin and United States dollar accounts. This new service allows users to hold Bitcoin and earn a 1% yield without needing to stake, lend, or lock up their assets.
Xapo customers can also send up to 1 million British pounds ($1.28 million) and make payments to UK-based wallets and bank accounts. Those with Bitcoin accounts can spend their Bitcoin “like fiat” using a universally accepted debit card and access other financial services, such as investing in S&P 500 stocks or acquiring select cryptocurrencies. Additionally, Xapo has integrated stablecoin payment rails with US dollar bank accounts.
Seamus Rocca, CEO of Xapo Bank, acknowledged the challenges of entering the UK market but expressed eagerness to expand local membership. Joey Garcia, Xapo Bank’s director and head of regulatory and public affairs, highlighted the unique opportunity to participate in the UK’s dynamic financial ecosystem, noting its promising regulatory framework and talent-rich environment.
The UK has been positioning itself as a global leader in the crypto and blockchain space, with the Financial Conduct Authority estimating that 10% of UK adults held cryptocurrencies in 2023. Xapo is not alone in gaining local authorization; on July 25, global neobank and fintech company Revolut secured its UK banking license after a three-year regulatory process, marking a significant milestone for the UK-headquartered company. Additionally, in mid-July, cryptocurrency exchange Kraken announced an expansion of its custody services for UK customers.