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5 Differences Between Xapo Bank & A Crypto Exchange


Note - As of 8th February, 2023 Xapo Bank's interest on US dollars increased to 4.6%, and as of 6th March, 2023 our Bitcoin interest, previously reduced to 0.1%, went back up to 1%.

Founded in 2014, Xapo is recognised globally as one of the pioneers and biggest players in the crypto exchange space. 

Building on the innovation and expertise from its early days of building “the Fort Knox of Bitcoin” as the first institutional custodian of Bitcoin, Xapo went through a remarkable business transformation and in 2021 became the first in the world to blend traditional banking with crypto, offering access to US Dollars and Bitcoin in one place.

“Is Xapo a Bitcoin wallet?” is one of the most searched terms on Google about Xapo. If you knew Xapo the Bitcoin wallet and find yourself wondering what changed, here are the five differences between Xapo Bank and a crypto exchange:

1. Licensed and regulated bank 

Xapo Bank is a fully regulated bank and licensed by the Gibraltar Financial Services Commission (GFSC) to provide fiat related services. Gibraltar is one of the most trusted financial jurisdictions in the world. USD deposits with Xapo Bank are covered by the Gibraltar Deposit Guarantee Scheme up to the US Dollar equivalent of EUR 100,000*, which is the same level of protection obtainable in the United Kingdom and other parts of Europe.

2. Licensed and regulated Virtual Asset Service Provider (VASP)

Xapo VASP is regulated under Gibraltar’s DLT regulatory framework, which requires us to protect our members' interests and mitigate risks. We have a strong balance sheet and are highly capitalised. The Xapo Bitcoin Reserve covers direct and effective losses that may be experienced by our members due to attacks on our systems and/or any other qualifying losses, including bankruptcy.

3. High interest on deposits

We pay one of the highest interest on deposits, with our members earning an annual interest of 4.6% on USD deposits and 1% on Bitcoin deposits.** This interest is earned in a safe and responsible way with low threats to your deposits. This interest is paid out every day, with no requirement to lock up funds for any period of time.

4. Instant conversion of fiat to crypto and vice versa

Xapo Bank was the first to offer both a US Dollar bank account and a Bitcoin account in one place. With a Xapo account, you can exchange US Dollar to Bitcoin and Bitcoin to US Dollar instantly, anytime and anywhere. Continuing the streak of “firsts”, in 2022 we became first to support crypto deposits into a fiat account when we launched a new feature that enables our members to deposit USDC directly into their USD accounts. We have since then also launched industry-first features that allow our members to send USDC using funds in their USD account, and make fast Bitcoin payments at low fees via the Lightning Network.

5. Dedicated Account Manager

Every member is assigned a personal Account Manager, who is available to provide support when required. Rather than just a chat channel in the app, there is a human who knows you and can provide personalised support based on your history.

* Eligible fiat deposits are protected by the Gibraltar Deposit Guarantee Scheme up to a maximum of the US Dollar equivalent of EUR 100,000 (subject to prevailing exchange rates on the compensation date).
** The Annual Interest Rate offered on both USD and Bitcoin deposits is variable and may change at any time. Please see our Interest FAQs for more information.


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