Bitcoin custodian bank Xapo Bank launches USDC deposit and withdrawal services

ChainCatcher news, Bitcoin custodian bank Xapo Bank has partnered with stablecoin issuer Circle to provide USDC deposit and withdrawal services. Xapo Bank stated that it will offer a 1:1 exchange rate for converting USDC to USD and supports USDC transfers. All USDC deposits at Xapo Bank are automatically converted to USD, with an annual interest rate of 4.1%.

It is reported that Xapo Bank is a member of the Gibraltar Deposit Guarantee Scheme (GDGS). Xapo claims that its business model is different from traditional banks; it does not engage in lending activities and does not rely on fractional reserve banking to generate profits. Instead, it retains all customer funds as reserves and invests them in "short-term, highly liquid assets" to distribute the earned interest to customers. (source link)