Gibraltar-based Xapo Bank has officially entered the market in the United Kingdom after successfully receiving its local banking license. The bank is launching new banking services catering to users wanting to hold Bitcoin.
On Aug. 5, Xapo Bank revealed that it is the first and only licensed bank in the UK to offer a combined interest-bearing United States dollar and Bitcoin (BTC) banking account.
Entering UK markets
According to the announcement, Xapo customers can also 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 yields 1% without staking, lending or locking up assets.
Xapo said those with Bitcoin accounts are able to 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.
Additionally, Xapo Bank has integrated stablecoin payment rails with US dollar bank accounts.
Seamus Rocca, CEO of Xapo Bank, said it was “no easy feat” to passport its banking license into the UK, though they are “eager” to expand local membership.
Joey Garcia, the director and head of regulatory and public affairs at Xapo Bank, called the access to the UK market “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.”
Related: What’s next for UK crypto regulations after Coinbase’s $4.5M fine?
UK crypto prospect
The UK has been active in trying to position itself as a world leader in the crypto and blockchain space. The country’s Financial Conduct Authority recently estimated that 10% of adults in the UK held cryptocurrencies in 2023.
Xapo is not alone in being a new financial services provider to gain local authorization for operations from UK regulators.
On July 25, the global neobank and fintech company Revolut secured its UK banking license after a three-year regulatory process. This was a significant milestone for the company, which is headquartered in the UK, solidifying its position in its home market.
Additionally, in mid-July, the cryptocurrency exchange Kraken announced an expansion of its custody services to customers in the UK.
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