Xapo Bank has announced that it is the first UK bank to offer interest-bearing accounts for both Bitcoin and fiat currencies. This milestone follows the successful passporting of the banking license from Gibraltar to the UK.
Xapo Bank Opens Interest-earning Bitcoin Accounts in the UK After License Passport
Passporting, a regulatory framework that allows Gibraltar-based financial firms to extend their licenses to the UK, is facilitated by the Financial Conduct Authority (FCA), the Prudential Regulation Authority (PRA), the Bank of England and Gibraltar authorities.
According to Xapo Bank, the platform will provide 1% interest on Bitcoin holdings without requiring users to stake, lend or lock their assets. However, details regarding the source of this interest income were not disclosed.
Xapo Bank's offerings in the UK will include the ability to spend Bitcoin via a debit card, make direct GBP payments to UK bank accounts, invest in the S&P 500, acquire select cryptocurrencies and use stablecoin payment rails with USD bank accounts.
The UK has experienced difficulties in recent years for fintech firms seeking to obtain banking licences. Despite this, crypto-friendly finance app Revolut recently received a new banking license from UK regulators.
Regulated by the Gibraltar Financial Services Commission since 2021, Xapo Bank was previously able to offer certain services in the UK but is now officially recognized as a UK-regulated bank.
*This is not investment advice.
