Xapo Bank: Gibraltar-Regulated Bitcoin Custody and USD Banking
In brief
- Xapo Bank holds Gibraltar credit institution license (Permission No. 23171) for Bitcoin custody and USD banking services
- Members earn yield on USD and BTC balances; BTC Savings offers 0.1–0.5% APR funded from Xapo's capital
- Platform features debit card with Bitcoin cashback, 0.10% BTC/USD conversion spread, MPC security, and 48-hour BTC Vault delay
Regulated Banking and Custody
Xapo Bank Limited is a Gibraltar-regulated credit institution under Permission No. 23171, while Xapo VASP Limited operates as a GFSC-regulated DLT provider under Permission No. 26061. The platform began as a Bitcoin custody company and evolved into a regulated bank serving users who want to manage USD and Bitcoin holdings without relying on a traditional exchange or custodian.
Security sits at the center of Xapo's design. Members benefit from MPC and a 48-hour BTC Vault delay, controls that reduce the risk of unauthorized or accidental asset transfers. This architecture appeals to users prioritizing custody over trading velocity.
Yield and Trading
Xapo offers yield on both USD and BTC balances. BTC Savings yield is currently in the 0.1–0.5% APR range with instant access, and the yield is funded from Xapo Bank's own capital rather than by lending, staking, or rehypothecating member Bitcoin. For members seeking higher returns, Xapo offers the BTC Credit Fund, a separate investment product that lends Bitcoin to vetted financial institutions and targets up to 4% APY in Bitcoin returns. The Fund is managed by Hilbert Capital, regulated by the Cayman Islands Monetary Authority (CIMA), requires a minimum 30-day lock-in period, and has a minimum investment threshold. Unlike BTC Savings, the Credit Fund does use member Bitcoin in its lending strategy.
The core trading function is in-app BTC/USD conversion, with fees or spread shown before confirmation. Xapo VASP does not charge a transaction fee for USD/BTC exchange and instead includes a spread in the quoted Bitcoin price, currently listed at 0.10%.
Cards and Global Access
The Xapo card is a debit card available after onboarding and payment of the membership fee, with benefits including Bitcoin cashback, foreign exchange benefits, high spending limits, and the ability to link to USD and/or Bitcoin wallets. This positions Xapo as a platform for users who want to hold Bitcoin and spend USD globally without converting to traditional payment rails.
"Xapo Bank is best for Bitcoin-first global members who want regulated USD banking, premium custody, and card/payments in one app rather than a high-volume trading exchange."
The platform's focus on custody, regulated banking, and card access distinguishes it from high-volume crypto exchanges. It's built for members who prioritize security and regulatory clarity over trading features or leverage.
