The invention of blockchain technology has given rise to many cryptocurrencies over the last decade, with tokens such as Bitcoin presenting promising investment potential. However, purchasing Bitcoin is usually associated with volatile trading as opposed to savings accounts, showing a gap in the market for long-term traditional investors.
Xapo provides a Bitcoin banking service and savings account, combining traditional banking infrastructure with blockchain technology to offer savings accounts with up to 2% annual interest. Access to the bank requires a membership application with the company focussing on high-volume investors, protecting every account with dedicated account managers and cutting-edge security whilst providing additional benefits such as payment cards and ATM withdrawals.
The company will undeniably face significant competition from cryptocurrency trading giants such as Binance and Coinbase. However, Xapo has taken a smart approach of combining Bitcoin investment with traditional banking, recognising that many people seek a more stable and long-term relationship with crypto. In 2023, it launched a Single Euro Payments Area (SEPA) payment feature and integration with the Faster Payments System, exemplifying the digital bank's firm rooting in the European financial market.
Kirsty
Company Specialist at Welcome to the Jungle