Gibraltar-licensed private bank offering interest-bearing USD accounts paid daily in Bitcoin
Xapo Bank is a regulated private bank and digital asset custodian based in Gibraltar that blends traditional banking rails with Bitcoin custody and yield. Founded in 2013, the institution allows members to hold fiat and crypto side by side, offering USD balances that pay daily yield in Bitcoin alongside Bitcoin-backed lending facilities.
Serial entrepreneur Wences Casares founded Xapo in 2013, initially building it into a global Bitcoin custody provider known for its high-security physical vaults. The business later evolved into a fully regulated credit institution operating from headquarters at One Grand Casemates Square in Gibraltar. Banking activities run through Xapo Bank Limited, while digital asset custody is handled by its affiliate, Xapo VASP Limited.
Xapo Bank operates under a full banking framework rather than an offshore unregulated yield model. Members receive an interest-bearing USD account paying daily yield in Bitcoin, with base rates starting at 4.1% variable APY and introductory rates reaching 4.6% APY. Deposited stablecoins such as USDC and USDT automatically convert to USD, with ERC-20 USDC deposits converted 1:1 without extra exchange fees. For Bitcoin holders, standard Bitcoin custody balances earn 0.25% APY without lending, while the opt-in BTC Credit Fund offers returns up to 4% APY by deploying capital to institutional counterparties. Members can also borrow cash against their Bitcoin with loan-to-value limits up to 40%.
Access requires passing identity verification and paying an annual membership fee of $1,000, payable in fiat, stablecoins, or Bitcoin. The bank operates under Gibraltar Financial Services Commission permissions as both a credit institution (Permission No. 23171) and a DLT provider (Permission No. 26061). The Gibraltar Deposit Guarantee Scheme insures cash deposits up to the equivalent of £120,000 in USD. In October 2026, Xapo reported a 167% capital ratio and a 1663% liquidity ratio, undergoing external financial audits alongside SOC 2 Type 2 compliance audits.
While cash balances carry statutory deposit protection, digital assets held in custody do not qualify for the Gibraltar Deposit Guarantee Scheme. Opting into the BTC Credit Fund introduces counterparty lending risk, as yields depend on institutional borrowers rather than sovereign backing. The steep annual membership fee also makes the platform uneconomical for smaller deposits.
Xapo Bank provides Gibraltar-regulated fiat protection with Bitcoin-denominated savings yields, but the mandatory $1,000 annual membership fee makes it impractical for small account balances.
Xapo Bank combines traditional private banking with Bitcoin custody under Gibraltar Financial Services Commission regulation. Founded in 2013 by Wences Casares, the institution operates through two distinct entities: Xapo Bank as a licensed credit institution and Xapo VASP Limited as a registered digital asset provider. This setup separates fiat banking protections from cryptocurrency custody.
The platform's primary yield vehicle is its USD Savings account. It pays up to 4.6% APY variable on USD balances, with interest calculated and distributed daily in Bitcoin. Gibraltar's statutory deposit scheme covers dollar balances up to an amount matching £120,000 in value. Deposits in USDT or USDC convert into USD automatically, and USDC transfers over Ethereum process 1:1 without extra exchange surcharges. For pure Bitcoin holdings, a base savings account yields 0.25% APY without lending collateral out, while the separate BTC Credit Fund targets up to 4% APY by lending assets to institutional counterparties.
Borrowing options include Bitcoin-backed cash loans with a maximum loan-to-value ratio of 40%. This conservative threshold lowers liquidation danger relative to retail lending desks, though loan origination requires holding collateral directly with Xapo VASP Limited. Custodial security relies on multi-party computation, underground vault infrastructure, and asset segregation enforced by Gibraltar law. The bank reported a 167% capital ratio and a 1663% liquidity ratio as of October 2026.
The notable barrier to entry is cost. Xapo Bank charges a $1,000 annual membership fee payable in fiat, stablecoins, or BTC. While deposit insurance covers USD cash, Bitcoin balances remain excluded from statutory compensation schemes. The platform suits high-net-worth holders and long-term accumulators wanting fiat banking rails paired with segregated Bitcoin custody, while smaller retail savers will find the fixed annual fee wipes out modest yields.
| KYC required ⓘ | Yes · unverified |
|---|---|
| Products | Savings / earn, Crypto-backed loans |
| Highest advertised APY ⓘ | 4.6% |
| Max loan-to-value | 40% · unverified |
| Available in | United Kingdom, Global · unverified |
| Insurance | Gibraltar Deposit Guarantee Scheme covers USD deposits up to £120,000 equivalent; Lloyd's of London covers BTC custody · unverified |
| Licenses & registrations | Gibraltar banking licence (GFSC) |
| Flexible (withdraw any time) | Yes · unverified |
| Auto-compounding | Yes · unverified |
Not disclosed by the provider: Loan APR from, Supported assets, Proof of reserves, Fixed terms.
Data from the provider's website and public sources. Fees and availability change; confirm on the official site before you sign up.
Offers variable yields up to 4.6% APY on USD balances with interest distributed daily in BTC.
Fiat balances are protected up to the USD equivalent of £120,000 under the Gibraltar Deposit Guarantee Scheme.
Provides instant cash loans against deposited Bitcoin collateral with loan-to-value ratios up to 40%.
Generates up to 4% APY in BTC by lending Bitcoin to vetted institutional counterparties.
Converts inbound USDC on Ethereum 1:1 into interest-bearing USD balances without extra conversion fees.
Stores Bitcoin via MPC protocols and physical underground vaults with mandatory 1:1 asset segregation.
Holds dollar balances protected up to £120,000 equivalent under the Gibraltar Deposit Guarantee Scheme, generating up to 4.6% APY paid daily in Bitcoin.
Offers 0.25% APY paid daily in BTC without rehypothecating or lending out underlying member Bitcoin.
Generates up to 4% APY in Bitcoin through institutional lending to established counterparties with loss-absorbing capital.
Provides pre-approved fiat borrowing facilities with flexible repayment terms and loan-to-value limits up to 40%.
Safeguards digital assets using underground vault systems, multi-party computation security, and legally segregated storage under Xapo VASP Limited.
Gives members in-app portfolio access to US-listed stocks, exchange-traded funds, and selected altcoins.
User feedback directly evaluating Xapo Bank is minimal, with no prominent recurring praise or criticism shared across multiple authors.
Based on 10 X replies, 2 Reddit posts and comments from the last 12 months, checked Oct 20, 2026. These are posts by users on other sites, not reviews submitted on CryptoReview.
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Xapo was founded in 2013 by entrepreneur Wences Casares as a Bitcoin custodian before transitioning into a fully licensed bank.
Membership costs $1,000 per year, payable in fiat currency, stablecoins, or Bitcoin. The fee comes with a 30-day full refund window if cancelled within the first month.
USD fiat deposits are protected up to the USD equivalent of £120,000 under the Gibraltar Deposit Guarantee Scheme. Bitcoin balances are held in segregated custody by Xapo VASP Limited and are not covered by the deposit guarantee scheme.
Xapo Bank provides USD Savings paying up to 4.6% APY in daily Bitcoin, a 0.25% non-lending Bitcoin savings balance, and a BTC Credit Fund generating up to 4% APY in BTC through counterparty lending.
Xapo offers Bitcoin-backed pre-approved loans with loan-to-value ratios up to 40%.
No, Xapo Bank does not issue or operate a proprietary platform token. All operations run on traditional currencies, Bitcoin, and supported stablecoins.
Recent public posts from @xapobankapp, shown as published. Not reviewed or endorsed by CryptoReview.
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