The recent announcement by Gibraltar-headquartered Xapo bank revealed advanced plans to enable its clients to execute British pound (GBP) payments. The retail-focused bank indicated clients can now directly execute inbound and outbound transactions. The facilitated service delivery accommodates UK-held accounts and crypto wallets.

Xapo Taps to Opportunities Arising from US Crypto Banking Crisis

The crypto-friendly financial institution confirmed in its March 14 update of facilitating GBP payments. The statement conveyed by Xapo Bank’s chief executive statement promised to facilitate USDC stablecoin services by Friday. The Gibraltar-based bank’s move portrays a pursuit of opportunities caused by the banking crisis experienced by the US crypto industry.

Xapo Bank’s chief executive Seamus Rocca confirmed that the retail-focused lender would leverage the Faster Payments network to support the GBP transactions. The update implies clients can seamlessly execute transactions to UK banks’ accounts and wallets.

Looming Activation of USDC-based Payments

Rocca assured its members that soon they would remit and receive USDC payments to accounts held with the Xapo Bank. The chief executive indicated that the USDC payments would attract zero fees upon activation.

The move by Xapo seeks to tap into emerging opportunities as most crypto firms pursue alternatives following the sudden collapse of pro-crypto banks, including Silvergate Capital Corp., Silicon Valley Bank, and Signature Banks.

The decision coincides with Binance’s pronouncement conveyed on Monday, March 13, that the leading global crypto exchange in transactions volume would temporarily halt GBP-based deposit and withdrawal services in May. Despite the federal-led initiative to protect customers whose deposits are trapped within the three banks, most crypto firms are scouting for alternatives. Besides on-chain banking, crypto companies are mulling partnering with offshore banks to offer automated settlement services.

The move by Xapo Bank to quickly enable GBP-based payments and promise to activate Circle’s USDC stablecoin services is set to exploit opportunities emerging in the likely exodus.

Besides the awareness of accepting GBP payments, Rocca’s statement on March 14 clarified that Xapo Bank had 2019 divested its Institutional Custody segment. Doing so was necessary to specialize in retail operations. The executive’s emphasis portrays efforts by Gibraltar’s bank to illustrate its distinct profile contrasted to the B2B bank operations offered by embattled Silvergate Capital and Signature Banks.

Xapo Bank Set for Notable Gains

While it is early to forecast Xapo Bank’s gain, the move by the bank would realize notable gains in the exodus. Furthermore, Xapo restated its regulatory compliance by being a licensed private entity to offer crypto custody and banking services.

The statement revealed that Xapo Bank has Bitcoin’s Lightning Network integrated into its operations. In addition, it will utilize the Faster Payments network operated by Pay. UK that is legally recognized and involved in setting standards for retail interbank payments systems across the UK.

Editorial credit: StockBook / Shutterstock.com

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