Xapo Bank , a Bitcoin custodian, and licensed private bank, has collaborated with Circle, a global financial technology company helping money move at internet speed, to become the first licensed bank in the world to integrate USDC payment rails as an alternative to SWIFT.
USDC is a digital dollar, also known as a stablecoin that provides a faster and more efficient way to send and receive money around the globe, 24/7, including weekends, in under an hour. By adding outrails to its existing USDC onramps, Xapo Bank enables members to bypass costly and time-consuming SWIFT payments and instead deposit and withdraw with no fees charged by Xapo Bank.Seamus Rocca, CEO of Xapo Bank, said: “Xapo Bank’s USDC payment rails mark a watershed moment in financial history, combining the speed and cost efficiency of the digital dollar with the security guarantees of a licensed private bank. Enabling auto-converted USDC deposits and withdrawals at Xapo Bank gives crypto members a safe haven for their savings. Running 24/7, including weekends, we eliminate the anxiety of keeping your money in exchanges and the hassle of expensive offramps into traditional banks.”The bank is offering a 1:1 conversion rate from USDC to USD. All USDC deposits at Xapo Bank are automatically converted to USD, meaning members can benefit from a 4.1% annual interest rate return on deposits. A fully licensed and regulated bank, Xapo Bank is a member of the Gibraltar Deposit Guarantee Scheme (GDGS) and guarantees its members’ USD deposits up to US$100,000 equivalent. Ensuring member protection, Xapo Bank does not stake any crypto deposits or have any exposure to surrounding crypto markets as all deposits are automatically converted to USD held by the bank.
“Xapo Bank was built to protect members’ savings. Unlike many traditional banks, we do not offer customer loans; all of our customers’ money is held dollar for dollar on our balance sheet. It is invested in very short-dated, highly credit-rated money market instruments and short-term bonds. We pass that benefit to our members through a 4.1% interest rate, paid daily.”