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How do we ensure the best security for your Bitcoin?

3
min read
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In the fast-paced world of cryptocurrencies, security is paramount. As a trusted name in the Bitcoin industry for over 10 years, Xapo Bank has always been committed to providing the highest level of security for your Bitcoin holdings. Here's how we ensure the best security for your Bitcoin and make custody simple for you.

  • 26,000 BTC under safe custody
  • 10+ years of expertise in Bitcoin custody
  • 1+ million people’s Bitcoin protected

We’re a regulated Bitcoin-enabled bank

Xapo Bank is a licensed and regulated Bitcoin-enabled bank in Gibraltar. As such, we operate in full compliance with regulatory standards and industry best practices. We ensure the legitimacy of members and transactions with strict Know Your Customer (KYC) and Anti-Money Laundering (AML) rules that further enhance the security and integrity of our platform.

We are also committed to providing unmatched financial transparency and safety to our members. And this is why we undergo annual audits by a Big Four firm as well as consistent evaluations by the regulator in Gibraltar. This allows us to ensure robust defences against cyber risks, fraud, and financial crime to provide the best security for your Bitcoin.

Learn more about our security standards.

We implement top-notch security practices

Our team of security experts work tirelessly to build the most secure Bitcoin custody solution for our members. To achieve this, we leverage MPC technology (multi-party computation) to secure your holdings on your BTC account and savings. On top of that, as a Xapo Bank member, you have access to a BTC Vault, a separate wallet where you can segregate your Bitcoin from the outside world.

What is an MPC wallet?

Multi-party computation (MPC) wallets boost the security of your Bitcoin, ensuring no single entity or person can threaten your Bitcoin. This is achieved by splitting the Master Private Key into multiple shards that can be stored in secure, secret locations around the globe. This process allows us to mitigate risks like hacking, phishing, and internal breaches, unlike traditional methods where a single point of compromise can lead to losses. Every time you initiate a transaction, each of the shards is required to sign the blockchain transaction to reach what is known as a signature threshold.

What is the BTC Vault?

The BTC Vault is the perfect place to hold your Bitcoin in the long term. With additional security features like PIN confirmation and 48-hour transfer delays, balances in your BTC Vault are kept 100% separate from your BTC Account, Savings account and card. So you’ll always have peace of mind knowing you’ve ensured the best security for your Bitcoin.

We are over-capitalised

With Xapo Bank, your Bitcoin is in safe hands. We have 26,000 Bitcoins in reserve and regulatory capital to ensure you are protected against system hacks, third-party theft, or even our bankruptcy. Rest easy knowing your Bitcoin is safeguarded.

We never lend your Bitcoin (or USD)

The Bitcoin you hold with us will always remain yours. We don't lend your Bitcoin, and we will never touch it. Therefore, you don’t have to worry about being unable to access your funds. so you can enjoy all of the benefits with none of the risks.

You might then wonder how we are generating interest for your Bitcoin. The simple answer is that we put our own Bitcoin reserves to work (remember, that’s 26,000 BTC), not yours. So you can grow your Bitcoin holdings in your sleep, worry-free.

We are all-in on Bitcoin

At Xapo Bank, we’ve been a Bitcoin company since 2013, and we are fully committed to the future of Bitcoin. Our dedication to the industry drives us to continuously innovate and improve our services to serve our members better and secure their Bitcoin holdings.

And you are confident that your Bitcoin is secure

The most important is that you feel confident that your Bitcoin is secure. At Xapo Bank, we help you feel that way by providing the best security for your Bitcoin with rigorous security measures, regulatory compliance, and commitment to transparency.

Experience top security that ensures your Bitcoin is protected at all times.

Xapo Bank is a crypto-enabled bank licensed by the Gibraltar Financial Services Commission. We give our members access to a US Dollar and Bitcoin account, successfully bridging the gap between traditional banking and crypto. USDC deposits into Xapo are immediately converted to USD on a 1:1 basis, giving instant dollar cash value with zero exchange fees.

*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.

*Interest on Bitcoin deposits will only be paid on balances of 5 BTC or less. For more information visit our Help Centre.

Disclaimer

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.

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