Xapo Bank Review: Xapo Bank (Gibraltar) Limited

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 Features

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.

Go to Xapo Bank

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.

Xapo Withdrawal

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

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.

Xapo Crypto

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 Fees

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:

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)
• N26

Go to Xapo Bank

More Information About Xapo Bank

• Xapo Twitter
• Xapo Facebook
• Xapo Instagram
• Xapo Crunchbase