Bitcoin custodian bank Xapo Bank launches USDC deposit and withdrawal services

2023-03-23 08:46:21

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ChainCatcher news, Bitcoin custodian bank Xapo Bank has partnered with stablecoin issuer Circle to provide USDC deposit and withdrawal services. Xapo Bank stated that it will offer a 1:1 exchange rate for converting USDC to USD and supports USDC transfers. All USDC deposits at Xapo Bank are automatically converted to USD, with an annual interest rate of 4.1%.

It is reported that Xapo Bank is a member of the Gibraltar Deposit Guarantee Scheme (GDGS). Xapo claims that its business model is different from traditional banks; it does not engage in lending activities and does not rely on fractional reserve banking to generate profits. Instead, it retains all customer funds as reserves and invests them in "short-term, highly liquid assets" to distribute the earned interest to customers. (source link)

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