Xapo Bank has made withdrawals and deposits of USDC possible for its users, thus introducing a new payment mechanism.
Xapo Bank announced the rollout of its new features, which would allow deposits and withdrawals of USDC and also enable their users to make transactions of USDC through their US Dollar accounts. On top of that, it would be completely free of charge. It has collaborated with Circle for the latest integration with USDC.
In a blog post, it claimed it was the first bank in the world with such features and said, “With the launch of Xapo Bank’s USDC withdrawal service, our members can now send USDC using funds from their Xapo Bank US Dollar accounts, with no fees incurred. This is in addition to our existing feature that enables our members to receive USDC into their bank account, which are instantly converted to US Dollars and earn them an annual interest rate of 4.1%, with no staking or exposure to the crypto market involved.”
Xapo Bank has added outrails to its current USDC on-ramps, which would make it a possible and better alternative than the SWIFT system being currently used as an international payment mechanism. The bank also informed of its regulated nature and its membership of the Gibraltar Deposit Guarantee Scheme (GDGS), which would insure their users’ deposits up to $100,000.
Xapo Bank has also mentioned it did not have loans as a product, due to which their members’ deposits were held in highly liquid instruments. It charged a flat fee to its customers, which covered their expenses and did not charge any hidden fees. In this way, their business model was different from that of traditional banks.