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Xapo Bank recently teamed with Faster Payment System (FPS) to expand its worldwide reach, in addition to implementing a USDC payment rail.
Circle is working with Bitcoin custodian and privately regulated bank Xapo Bank to deploy USDC payment rails as a SWIFT substitute. According to the bank, current USDC onramps now have rails. Customers of Xapo Bank may therefore rapidly deposit and withdraw money using USDC.
The new feature, according to Seamus Rocca, CEO of Xapo Bank, combines the speed and cost-effectiveness of the digital dollar with the security assurances of a registered private bank. He stated:
“Enabling auto-converted USDC deposits and withdrawals at Xapo Bank gives crypto members a safe haven for their savings”
Although SWIFT is the global standard for international transactions, the procedure is time-consuming and expensive. Xapo Bank clients, on the other hand, would be able to convert USD immediately to USDC and transfer the same. The bank also provides a 1:1 conversion rate from USDC to USD with no additional costs.
Xapo Bank ensures its members’ USD deposits up to $100,000 equivalent as a member of the Gibraltar Deposit Guarantee Scheme (GDGS). When you deposit USDC into Xapo Bank, it is instantly converted to USD. Surprisingly, the bank does not engage in staking, lending, or fractional reserve banking to make profits.
Rocca claims that this is then invested in short-term bonds and money market products, giving subscribers a daily return of 4.1%. Each customer also has to pay a $150 membership fee. These allow the bank to maintain consistent liquidity and pay customers earned interest.
Xapo Bank recently teamed with Faster Payment System (FPS) to expand its worldwide reach, in addition to implementing a USDC payment rail. With the FPS connection, Xapo Bank users will be able to transmit up to £1 million in real-time from their XApo USD accounts.
Likewise, the bank established a partnership with Lightspark. Xapo bank users may make instant and cost-effective transactions of up to $100 by connecting with the Lightning Network.
Despite its success as a private bank, the bank has future plans to offer Wealth Management as well as other services such as secured lending and asset protection.
