Xapo bank is a private bitcoin bank that offers USD accounts, bitcoin accounts, USDC, bitcoin wallet, and Xapo debit cards to over 100 countries around the world. You will receive your own USD account number and bitcoin address once you open your Xapo account.
Recently, the bank integrated the Lightning Network. This means With Lightning, Xapo users can instantly pay for small items up to 100 USD in bitcoin at any vendor who accepts Lightning payments without having to pay high transaction fees and long blockchain confirmation waiting times.
The bank was started in 2012 by Federico Murrone and Wensceslao Casares as a bitcoin wallet and cryptocurrency custodian.
Xapo bank comes with innovative and attractive features, which include:
- An annual interest rate of 4.1% on U.S. dollars in accounts and 1% on your Bitcoin deposits.
- State-of-the-art protection for you and your wealth in our ultra-secure vault based in the Swiss Alps
- Buy bitcoin and stablecoin with a bank account
- 24/7 customer support
- An international bank account holding USD and bitcoin
- Up to 1.1% cashback when you spend using your Xapo card
- Fee-free multi-currency card transactions. If your transaction is in a currency other than USD, Xapo will automatically calculate it in USD based on the exchange rate provided by the Visa or Mastercard.
- Entry to airport lounges when you travel
- Free ATM withdrawals of up to $100 per month
- Boingo Wi-Fi for Xapo cardholders
How Xapo Bank Works
Xapo Bank is a fully regulated bank that offers both crypto and traditional banking services in the same app. This means that you can buy, sell, hold, and use Bitcoin, and stablecoins (USDC and USDT) alongside your regular US dollar account. You can send and receive USDC and USDT using funds from your Xapo Bank US Dollar account. With a Xapo account, you can instantly exchange US Dollar to Bitcoin/USDC/USDT and vice versa.
Xapo Bank does not offer loans, which means that your deposits are held dollar for dollar. Additionally, you can earn 4.1% annual interest on US Dollar deposits with daily payouts. You can also earn 1% annual interest on Bitcoin deposits paid out daily, with no exposure to the crypto market involved. You can make payments and withdraw funds anywhere with your Xapo Bank Card and your membership grants you access to a dedicated personal account manager. Moreover, the bank has integrated low cost Lightning Network payments.
How to Open Xapo Account
Xapo is a private bank that offers membership to customers in over 100 countries except the United States. To apply for membership, you must be over 18 years old and have a valid passport, proof of address, and source of funds. There is a $150 annual fee for membership. However, there is a 3-month free trial period.
To apply for membership, you need to download the Xapo app for Android or iOS and sign up. You will be asked to provide your personal information, including your name, address, and date of birth. You will also need to upload a copy of your passport and proof of address. Once you have submitted your application, Xapo will review it and contact you if you are approved.
Xapo Debit Card Review
Xapo bank debit card is a bitcoin-based debit card. Xapo card is available in 100+ countries. You can order a Xapo Bitcoin debit card and spend Bitcoins at any merchant that accepts Visa. The card offers cryptocurrency and fiat money functions. With Xapo debit card, you can earn up to 1.1% cashback with every card transaction, spend in any currency with no additional fees, and enjoy a premium benefits such as airport lounge access, global Wi-Fi, fee-free ATM withdrawals (up to $100) and one free airport lounge access a year. Xapo card can be used worldwide where Visa and Mastercard are accepted. You can also freeze, replace, and manage your card from Xapo app.
If you want to withdraw money from your Xapo account, the supported method is Xapo withdraw to bank account. You need to make a bank transfer from Xapo to your bank account. Alternatively, you may withdraw your funds as bitcoin to your bitcoin wallet.
Xapo doesn’t charge withdrawal fees for wire transfers, but your local bank may impose a fee for these transactions. Should your local bank charge a fee for depositing money via wire transfer, the amount will be made clear to you when you initiate the transfer.
Xapo deposit methods are wire transfer initiated by your local bank, but SWIFT is temporarily disabled. You can deposit USDC instead, which is converted to USD 1:1 instantly. Xapo Bank also gives you your own Bitcoin address to receive funds.
As stated earlier, Xapo offers crypto banking services. This means you can buy cryptocurrency via Xapo app and earn interests on your bitcoin deposits.
How to Buy Bitcoin with Xapo
You first need to add funds to your Xapo USD wallet, then you will use the US dollars to purchase bitcoin within the Xapo app following these steps.
- Select Accounts
- Tap on bitcoin wallet
- Tap on Buy/Sell
- Select the USD amount you want to buy in bitcoin
- You’ll have 30 seconds to authorize the transaction before it’s canceled
- Confirm this transaction with your PIN
Xapo Wallet Review
Xapo bitcoin wallet can be accessed either on Xapo app or online. It is compatible with Android and iOS. At the moment, Xapo wallet only supports bitcoin. Xapo wallet supports Visa and Mastercard transactions, which adds an important layer of convenience for users.
In terms of security, Xapo crypto wallet supports Two-Factor Authentication (2FA), which requires two levels of authentication to let you access your wallet. The wallets offer an optional feature, which allows you to get an alert every time funds move out of your wallet. Please note that Xapo wallet is a custodial wallet, meaning that the bank has full control over your funds.
Xapo bank fees include an upfront annual fee of $150 for premium banking service. The deposit covers your first annual $150 fee. After opening your account, you have a 3-month free trial period. Membership fee can be paid in USD or BTC, converted at the time of billing. Your deposit cannot be a combination of the two currencies, so you need to deposit either $150 or equivalent in BTC. The fee will be debited automatically each year.
Here is a list of major fees you should expect:
|Fee Description||Fee Amount|
|Maintaining the account||150 USD/year|
|Sending money through the Faster Payment System||0.15 GBP|
|Sending money through the SEPA system||0.15 EUR|
|Sending money through the SEPA Instant system||0.20 EUR|
|ACH Deposits||0.15 USD|
|ACH Withdrawals||0.15 USD|
|Domestic FedWire Deposits||5 USD|
|Cash withdrawal (ATM) above 100 USD/month||2% of withdrawal amount|
|First replacement card in a year||0 USD|
|Additional replacement card in a year||25 USD|
|Emergency replacement card production||100 USD|
|Emergency cash access||120 USD|
|Closed card (cancellation by user)||25 USD|
|Dispute fee||45 USD|
|First yearly airport lounge visit||0 USD|
|Subsequent yearly airport lounge visits||32 USD|
|Guest visit fee||32 USD|
|Cancellation fee (if lounge service used)||32 USD|
|Internal Bitcoin transactions between Xapo accounts||No processing fees|
|Outgoing transactions to external Bitcoin addresses||Standard fee displayed on confirmation screen|
|Incoming Bitcoin transactions to Xapo Wallet (BTC 0.00000816 or less)||BTC 0.00000544|
|Lightning network payments||No fee|
Xapo Supported Countries
Although Xapo Bank is a fully regulated bank based in Gibraltar, you can open a non-resident bank account from over 100 Xapo countries around the world. You can apply for your account if you live in countries that will show in the drop-down menu in the sign-up page. Xapo bank supported countries are in Europe, Africa, Asia, and Latin America. The countries include Germany, UK, Netherlands, Iceland, Canada, Singapore, Japan, Saudi Arabia, Hong Kong, UAE, Brazil, Bangladesh, India, South Africa, Kenya, Tanzania, Zambia, etc.
Is Xapo Bank Safe? Is Xapo Legit?
Xapo is a safe and legitimate bank. It holds both a VASP (Virtual Assets Service Provider) and a banking licence. Your fiat deposits are protected up to the US dollar equivalent of €100,000 by the Gibraltar Deposit Guarantee Scheme. Moreover, Xapo has received Mastercard and Visa memberships. It is regulated by the Gibraltar Financial Services Commission (GFSC). The GFSC supervises and regulates both fiat currency and crypto transactions.
Xapo owns a military-grade vault inside a decommissioned bunker in the Swiss Alps. Their servers are located behind reinforced concrete, steel blast doors, and radio-wave-blocking cages. They are also guarded on the ground by a security team.
Xapo Bank Alternatives
Xapo is not the only crypto-friendly bank around. Xapo alternatives include:
- Juno Bank (Checking account with integrated bitcoin wallet in the US)
- Revolut (crypto trading)
- Mistertango (crypto banking and trading)
- Dukascopy (supports crypto trading and crypto settlement accounts for cryptocurrency businesses)
More Information About Xapo Bank
What's Xapo? Is Xapo a bank?
Yes, Xapo is a fully licensed and regulated private bank in Gibraltar that offers USD and bitcoin accounts to customers in over 100 countries around the world.
Who is the owner of Xapo bank?
Xapo Bank is owned by Xapo Holdings Ltd., founded by Wences Casares, an Argentine-American entrepreneur. Other investors include Andreessen Horowitz, Founders Fund, and Digital Currency Group.
Is Xapo bank legit and safe?
Yes, Xapo bank is safe and legit. Customers’ fiat deposits are protected up to the US dollar equivalent of €100,000 by the Gibraltar Deposit Guarantee Scheme. The bank has received a European e-money license in Gibraltar and Mastercard and Visa memberships. It is regulated by the Gibraltar Financial Services Commission (GFSC). The GFSC supervises and regulates both fiat currency and crypto transactions.
Can I buy Bitcoin on Xapo?
Yes, Xapo allows you to buy bitcoin. To buy bitcoin on Xapo, you first need to add funds to your Xapo USD wallet, then you will use the US dollars to purchase bitcoin within the Xapo app.
Is Xapo wallet safe?
Yes, Xapo wallet is generally considered to be safe. Xapo offers enhanced safety with the Xapo Bitcoin Reserve, covering direct losses from attacks and bankruptcy. They also ensure that members' Bitcoin is segregated from their own assets, providing added security.
What are Xapo bank supported countries?
Xapo bank supports countries in Europe, Africa, Asia, Ocenia, and Latin America. The countries include Germany, UK, Netherlands, Iceland, Canada, Singapore, Japan, Saudi Arabia, Hong Kong, UAE, Brazil, Bangladesh, India, South Africa, Kenya, Tanzania, Zambia, etc