Xapo Bank becomes First Fully Licensed UK Bank to offer Interest Bearing Bitcoin Accounts

Xapo Bank has become the first fully licensed bank in the United Kingdom to offer interest-bearing accounts for Bitcoin (BTC) and fiat currencies. According to reports, the licensed digital banking for crypto had successfully passport its banking license from Gibraltar into the country.

The Financial Conduct Authority (FCA), the Prudential Regulation Authority (PRA), the Bank of England, and Gibraltar authorities have facilitated the passporting scheme, which is a framework that enables Gibraltar-based companies to extend their banking license to the UK.

According to a statement, Xapo's digital banking platform claims to give 1% interest yields on BTC without requiring users to stake, lend, or lock up their assets. The company did not specify where the interest yield would originate. Users in the UK can use Xapo's debit card to spend their bitcoin, purchase select cryptocurrencies, send direct GBP payments to UK bank accounts, invest in S&P 500 stocks, and use USD bank accounts to access stablecoin payment rails.

In recent years, fintech companies have mainly had difficulty obtaining banking licenses in the UK. Revolut, a finance app that supports cryptocurrencies, did, however, just get a new banking license from UK authorities. Although Xapo Bank was not a regulated UK bank until recently, it has been governed by the Gibraltar Financial Services Commission since 2021 and is permitted to provide certain services in the UK, the post added.

Seamus Rocca of Xapo Bank further explained that, as a result of the license, the company can now directly provide banking services to the UK market. Achieving this is no small feat and demonstrates we meet the UK's high regulatory standards.

This information follows the announcement that the UK sees itself as a possible leader in blockchain technology and cryptocurrencies, with estimates indicating that 10% of UK adults will possess cryptocurrencies by 2023.

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