Xapo Bank Starts Offering Interest-Bearing Bitcoin Accounts in UK

Xapo Bank has become the first UK bank to offer interest-bearing accounts for both Bitcoin and fiat currencies.

This has been made possible through the passporting scheme, which allows Gibraltar-based firms to extend their banking license into the UK with help from regulatory authorities such as the FCA, PRA, Bank of England, and Gibraltar authorities.

According to Xapo’s statement, their platform offers a 1% interest yield on Bitcoin without requiring users to stake, lend, or lock up their assets.

However, the source of this interest yield was not disclosed. Xapo’s services allow users to spend their Bitcoin through a debit card, make direct GBP payments to UK bank accounts, invest in S&P 500 stocks, purchase select cryptocurrencies, and access stablecoin payment rails with USD bank accounts.