International remittance via USDC is now possible
Xapo Bank, a Gibraltar-based bitcoin (BTC) custodian, announced on the 20th that it will provide a remittance system in partnership with US company Circle, which issues stablecoin USDC.
We are pleased to be the first bank in the world to fully integrate with USDC, enabling our members to send and receive USDC from their US Dollar accounts, no fees charged.
More: https://t.co/ep3wx0vLLn#Xapo Private Bank pic.twitter.com/Obed371oiT
—Xapo Private Bank (@xapoprivatebank) March 20, 2023
Xapo Bank is a licensed private bank that also provides services such as savings accounts.
Xapo Bank users will now be able to bypass SWIFT, traditionally used for international payments, and instead deposit and withdraw in the USDC stablecoin. Xapo Bank does not collect any fees, so users can save costs and transfer money quickly.
What is SWIFT
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a non-profit corporation that provides a telecommunications network that enables international money transfers between banks. It connects more than 11,000 financial institutions in more than 200 countries around the world and provides remittance services to more than 4 billion financial accounts.
Xapo Bank CEO Seamus Rocca explained:
Our USDC payment system is a breakthrough in speed, low cost, and the security of a regulator-approved private bank.
Xapo Bank provides USDC deposits and withdrawals that are automatically converted to USD, providing cryptocurrency users with a safe place to save.
Xapo Bank offers a 1:1 USDC to USD exchange rate. All USDC deposits at Xapo Bank are automatically converted to US dollars. This is subject to deposit interest.
Xapo Bank has been equipped with a function that allows you to deposit USDC into your account and immediately save it as US dollars, and this time it has added a USDC remittance function.
About Xapo Bank
Xapo Bank was founded in 2013 and has grown to become a leading Bitcoin custodian. He also obtained a banking license. In the future, it also plans to offer private banking services such as wealth management, secured lending and asset protection.
It is also a member of the Gibraltar Deposit Guarantee Scheme (GDGS), which guarantees US dollar deposits up to approximately ¥13 million ($100,000). All deposits are automatically converted to US dollars upon deposit, allowing users to be protected without exposure to the cryptocurrency market (portfolios subject to price fluctuations).
We don’t lend like traditional banks, we hold all of our customers’ funds. We invest in short-term bonds with high credit ratings, and return the profits to users in the form of 4.1% interest. To cover overhead costs, users are charged a membership fee of about ¥19,000 ($150).
What is custody
Refers to holding and managing assets on behalf of investors. A term widely used for assets other than virtual currency. It refers to a service that performs a wide range of operations, such as asset custody, settlement related to trading, receipt of principal and interest, dividends, and exercise of voting rights. A company that performs custody is called a custodian.
USDC Reserve Status
USDC temporarily fell to around $0.88 due to the closure of Circle’s partner Signature Bank and Silicon Valley Bank (SVB), causing a dippeg with the US dollar.
The price has now recovered to $1. Circle CEO Jeremy Allaire emphasized the safety of USDC reserves on Wednesday. He explained that he plans to transfer cash currently deposited with SVB to BNY Mellon Bank.
connection: US Circle CEO emphasizes safety of stablecoin USDC reserve