Xapo bank to use USDC stablecoins as an alternative to SWIFT

According to Cointelegraph, this step can enable users to conduct fund-based transactions

The bank claims that its business structure is different from traditional banks
The bank claims that its business structure is different from traditional banks

Xapo Private Bank, a Bitcoin custodian and licensed platform, has collaborated with Circle, a financial technology company, to include USD Coin payment rails as a substitute to SWIFT, states Cointelegraph. 

“We are pleased to be the first bank in the world to fully integrate with USDC, enabling our members to send and receive USDC from their US Dollar accounts, no fees charged,” Xapo Private Bank tweeted. 

According to Cointelegraph, the company stated that the facility permits users to evade SWIFT payment system using “outrails,” included to its current USDC on-ramps. It’s believed that USDC stablecoin’s utilisation can allow members to conduct fund-based transactions from Xapo excluding fees, and benefit from the conversion rate between USDC and US Dollar. Furthermore, it’ll allow users to gain a 4.1% annual interest rate return.

Moreover, Cointelegraph noted that Xapo bank is licensed, registered and is tied-up with Gibraltar Deposit Guarantee Scheme (GDGS). Sources suggest that Xapo bank doesn’t concern itself with cryptocurrency-based transactions, along with deposits being changed into the dollar upon receipt by the bank. 

(With insights from Cointelegraph)

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First published on: 23-03-2023 at 15:00 IST