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Xapo Bank

6 Things To Know About The Gibraltar Deposit Guarantee Scheme And How It Protects You


Because Xapo Bank is a fully registered and licensed bank in Gibraltar, our members automatically enjoy the protection of the Gibraltar Deposit Guarantee Scheme. This is one of the reasons we are able to protect and grow our members’ wealth in such a unique way.

What is the Gibraltar Deposit Guarantee Scheme?

The Gibraltar Deposit Guarantee Scheme (GDGS) is a scheme created by law and operated by a designated authority in Gibraltar. It is not a private scheme, neither is it an insurance plan we obtain from a private provider. Because it is backed by law and independent of the industry operators, the GDGS gives depositors in Gibraltar banks, like Xapo Bank, the confidence that their fiat (i.e. non-cryptocurrency) deposits are protected.

What is the level of cover?

Under the GDGS, eligible fiat deposits held with Xapo Bank are protected up to the US Dollar equivalent of EUR 100,000. In simple terms, this means that in the unlikely event that we cannot repay deposits, the scheme will reimburse Xapo Bank members up to this amount. Being able to provide this level of protection to our members is one of the key pillars of our value proposition to protect and grow your wealth.

This level of cover is the same as what is provided by other well known banks licensed in the UK and European Economic Area. This demonstrates that because we are licensed in Gibraltar, Xapo Bank operates within the same standards of regulation as established banks licensed in other globally recognised jurisdictions, and provides the same level of consumer protection.

How is compensation calculated?

The amount of compensation provided by the GDGS is calculated based on eligible fiat deposits held in a Xapo Bank account on the compensation date. The compensation will also include any interest which would have been paid to members on their fiat deposits with Xapo Bank up until the compensation date. Features like these are important to Xapo Bank, as they guarantee that our members will never lose the interest they had earned on their deposits, even in the unlikely event that we are unable to continue in business.

Are larger amounts protected?

Other than the level of cover offered, there are other rights that Xapo Bank members have under the GDGS. An important one is protection for temporary high balances, which protects balances above the level of cover for up to six months after the deposits are made.  For example, if you have just sold your property or inherited some money or even received a lump sum from your retirement - it will be protected by the scheme for up to six months after it is credited to your account.

Do I need to pay for this cover?

You do not need to pay additional fees for this cover over your fiat deposits. It is a legal right that you get the moment you open an account with Xapo Bank. As part of the onboarding process, Xapo Bank members are provided with a copy of the Depositor Information sheet. This document gives members a summary of their rights, level of cover and other relevant information associated with the GDGS.

As a Xapo Bank member you do not need to contribute towards the finances of the scheme. The GDGS is entirely financed by the licensed banks in Gibraltar, not by their depositors. Even in the event of having to claim compensation, the scheme does not charge depositors for making a claim and getting the cover they are entitled to.

What happens if I need to claim?

If the unthinkable happened and we were to fail, you don’t even need to file a request with the GDGS for your compensation. The organization that oversees the scheme would be able to access our records, and aim to automatically reimburse affected members within 10 working days. Member information will be treated by the authority administering the scheme with the strictest confidentiality, taking data protection into consideration.

Of course, we have no intention of going anywhere. We are here for the long run to protect and grow your wealth, and view the GDGS simply as an additional layer of security a Xapo Bank membership can offer you.

For more information about the Gibraltar Deposit Guarantee Scheme, we suggest you visit their website.


This article is for general information purposes only and is not intended to constitute legal or other professional advice or a recommendation of any kind whatsoever and should not be relied upon or treated as a substitute for specific advice relevant to particular circumstances. We make no warranties, representations or undertakings about any of the content of this article (including, without limitation, as to the quality, accuracy, completeness or fitness for any particular purpose of such content), or any content of any other material referred to or accessed by hyperlinks through this article. We make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up-to-date.

In the case of conflict between the content of this blogpost and any document it is referring to, the latter shall prevail and apply to those specific aspects. The information provided is for information purposes only, and is not for the purpose of providing legal advice.

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