Question 1

What is Xapo Bank?

Accepted Answer

Xapo Bank is a fully licensed digital bank headquartered in Gibraltar, specializing in Bitcoin and USD banking services. Operating as a unique hybrid of traditional private banking and cryptocurrency services, Xapo Bank provides institutional-grade infrastructure combined with consumer-friendly technology. The bank holds both a full banking license and a distributed ledger technology license as a virtual asset service provider (VASP) from the Gibraltar Financial Services Commission. With approximately 200 employees, Xapo Bank serves clients worldwide except in the United States.

Question 2

When was Xapo Bank founded?

Accepted Answer

Xapo was originally founded in late 2013 by entrepreneur Wences Casares and COO Federico Murrone as a Bitcoin vault and wallet service, opening to the public in March 2014. The company initially established its headquarters in Palo Alto, California, before moving to Zug, Switzerland in May 2015. In July 2017, Xapo was granted a European e-money license in Gibraltar. The transformation into Xapo Bank occurred in 2021 when the company pivoted to Gibraltar and obtained full banking and VASP licenses. In 2019, Coinbase acquired Xapo's institutional custody business, allowing Xapo to refocus on its banking operations.

Question 3

Where is Xapo Bank headquartered?

Accepted Answer

Xapo Bank is headquartered in Gibraltar at One Grand, Casemates Square. Gibraltar was chosen as the bank's base due to its progressive approach to cryptocurrency and banking regulations, providing a supportive regulatory environment for digital asset banking. Despite its Gibraltar headquarters, Xapo Bank maintains its famous ultra-secure Bitcoin storage facility in Switzerland, housed in a nuclear-blast-proof bunker carved into granite with six-ton steel doors and biometric security.

Question 4

Where does Xapo Bank operate?

Accepted Answer

Xapo Bank operates globally from its Gibraltar base, serving clients worldwide through its digital platform. The bank does not serve U.S. clients due to regulatory considerations. In August 2024, Xapo Bank expanded into the UK market, becoming the first institution in the country to offer interest-bearing Bitcoin and fiat banking accounts. As a fully digital operation, Xapo Bank provides services internationally through its mobile app and online platforms, with physical presence maintained only in Gibraltar for regulatory purposes and in Switzerland for secure vault operations.

Question 5

What services does Xapo Bank offer?

Accepted Answer

Xapo Bank offers five core banking services in both fiat and cryptocurrency: deposit accounts with IBAN for wire transfers, payment cards (Visa debit cards linked to USD or Bitcoin balances with up to 1% BTC cashback), savings accounts (earning 0.5% APR on BTC balances up to 2 BTC and 3.6% APR on USD), Bitcoin-backed loans allowing clients to borrow cash against BTC collateral, and investment access including US stock trading. The bank integrates the Bitcoin Lightning Network for near-instant, low-cost transactions up to $100 USD. Digital services include seamless currency conversion, multi-currency payments supporting USD, EUR, GBP, and stablecoins like USDT and USDC. Security features include SOC 2 Type II certification, PCI-DSS compliance, multi-party computation (MPC) for key management, and biometric verification.

Question 6

What makes Xapo Bank unique?

Accepted Answer

Xapo Bank stands out as the first fully licensed bank to seamlessly integrate Bitcoin and traditional banking services with complete real-time transactability. The bank's founding story is rooted in CEO Wences Casares's personal experience with Argentina's economic volatility, driving his vision that digital currencies could solve global economic fragmentation. Xapo Bank's security infrastructure is legendary, maintaining Bitcoin cold storage in a Swiss mountain bunker with armed guards, biometric scanners, and 24/7 video surveillance. The bank pioneered Bitcoin-backed lending and was the first to integrate Lightning Network payments. Xapo Bank's regulatory achievement in obtaining both banking and VASP licenses in Gibraltar while maintaining UK FCA oversight demonstrates its commitment to compliance. The bank positions itself as "making Gibraltar like a new Switzerland: private banking in the realm of crypto."

Question 7

What type of financial institution is Xapo Bank?

Accepted Answer

Xapo Bank is a licensed digital private bank in Gibraltar, operating under dual regulatory frameworks: it holds a full banking license and a distributed ledger technology (DLT) license as a virtual asset service provider from the Gibraltar Financial Services Commission (GFSC), with partial regulation by the UK's Financial Conduct Authority (FCA). This unique licensing structure allows Xapo Bank to provide both traditional banking services and cryptocurrency services within a fully regulated environment. USD deposits are covered up to the Euro equivalent of €100,000 by the Gibraltar Deposit Guarantee Scheme. As a digital bank, Xapo operates without physical branches, delivering all services through mobile and online platforms while maintaining the prudential standards and regulatory compliance of a traditional private bank.

Xapo Bank

in Gibraltar 🇬🇮

Crypto-Friendliness

All done!

About Xapo Bank in Gibraltar