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Xapo Bank Review 2025

Xapo Bank Review 2024: Secure Bitcoin Banking

author-avatarDren Hima
•
Published 1 month ago 09m

Coincub Score

/5
Open Account
Membership application involves detailed KYC/AML verification and proof of address, which may delay the process.
/5
Interface
User-friendly app with secure biometric login, intuitive navigation, and stock trading for non-US members.
/5
Customer support
7-day support via app and email, dedicated account manager; lacks 24/7 support like competitors.
/5
Security
High-level security features including the Zero Trust model, biometric authentication, and vault systems.
/5
Fees
Annual $1,000 membership fee, dynamic conversion rates, high compared to competitors.
/5
Withdrawal
It supports USD and BTC withdrawals, including a 48-hour delay for BTC Vault withdrawals for added security.

Xapo Bank info

EXCHANGE INFO
Founded 2013
Headquarters Gibraltar
Website https://www.xapobank.com/
Target clients Individuals and institutions seeking secure Bitcoin and USD banking services.
Employees Not disclosed
Financials
Market cap Not disclosed
Daily volume trading Not disclosed
Revenue Not disclosed
Currencies
Fiat supported USD, EUR, GBP (via conversion); withdrawals supported via ACH, Fedwire, and SEPA.
Cryptocurrencies BTC, ETH, ADA, MATIC, USDC, USDT
FEES AND TRADING
Pricing Plans Annual $1,000 fee; dynamic conversion rates; no explicit trading spreads disclosed.
Cryptocurrency Fees Conversion rates are dynamic; specific rates are not disclosed.
Crypto services
Tokenization services
Offers Bitcoin ETF
Staking services
Interest on savings N/A
Crypto Custody
Crypto Trading
Business services
Invoicing service
Payments Services
Cards
API
Insurance Coverage
Interest on savings Yes
REGISTRATIONS
Crypto licenses VASP Gibraltar Financial Services Commission (DLT license).
Banking licenses (IBAN) Gibraltar Financial Services Commission (credit institution license).
Money Transmitter or E-Money Licences Licensed under the Financial Services Act in Gibraltar.

Explore Xapo Bank

Key Features

Xapo Bank is a financial institution that brings crypto to traditional banking through its innovative and secure platform for a global clientele. It has headquarters in Gibraltar and is licensed as a private secure Bitcoin bank and as a Virtual Asset Service Provider (VASP). Xapo Bank aims to protect and grow its members’ wealth through both fiat services and Bitcoin. 

Launched in 2013, Xapo Bank went from a Bitcoin wallet provider into a full-fledged Bitcoin banking institution. It provides a wide range of financial solutions, including savings accounts with interest on Bitcoin and USD deposits, stock trading, and a highly secure BTC Vault. It uses advanced technologies such as a zero-trust security model and multi-party computation (MPC) protocols to ensure safety and privacy for its users. 

Xapo has an annual membership fee of $1,000 and its services target both individuals and institutions that want high-level financial security and accessibility. Its members benefit from features such as biometric authentication, fiat and crypto payment solutions, access to stock markets, and a signature debit card with cashback rewards. It is overseen by the Gibraltar Financial Services Commission. 

Xapo brings innovation and has become one of the leading choices for those who want to mix both traditional and digital finance. This report provides a detailed analysis of Xapo Bank’s offerings, performance, and strategic positioning in the sphere of crypto banks. 

About Xapo Bank

Xapo was founded by technology entrepreneur Wences Casares as a Bitcoin wallet and vault service. Cazares was inspired by his experiences with financial instability in Argentina and wanted to create a secure Bitcoin storage solution. But over the years, it grew to become a VASP and a fully licensed secure Bitcoin bank that is known globally. Xapo views Bitcoin as the “currency of the future” and sees USD as a reliable reserve currency. Its mission is to protect and grow its members’ wealth by offering secure and innovative financial services that integrate Bitcoin and traditional banking. Its vision is to enable equal access to global financial tools, eliminate the barriers created by geographic and political circumstances, and advance the adoption of Bitcoin as a global currency.

Xapo launched its wallet and debit card services back in 2014 and started earning recognition there. Before moving to Gibraltar, its headquarters were relocated to Zug, Switzerland, in 2015. Xapo received a BitLicense from the New York State Department of Financial Services but later relinquished it in 2022. 

In 2019, Coinbase acquired Xapo’s institutional custody business. Later on, in 2023, Xapo introduced stock trading services for non-US members and expanded its financial offerings.

The Gibraltar Financial Services Commission oversees its compliance with Know Your Customer (KYC), Anti-Money Laundering (AML), and data protection regulations. Additionally, fiat deposits are insured up to the equivalent of €100,000 under the Gibraltar Deposit Guarantee Scheme, enhancing member confidence. Xapo raised $40 million in funding from investors such as Benchmark, Pantera Capital, and Fortress Investment Group.  As of 2024, Xapo continues to innovate and make strategic decisions to increase its accessibility. 

Features and Offerings

As a hybrid financial institution, Xapo Bank offers a lot of advanced financial services.

Core Banking Features

Xapo Bank offers Multicurrency Accounts, where members can hold funds in USD and Bitcoin and convert fiat and crypto in a seamless manner. It also covers Interest-Bearing Accounts. With Bitcoin Savings, users can earn 1% APR on BTC deposits (up to 5 BTC), paid daily in Satoshis. With USD Savings, users can earn 4% APR on USD deposits, paid daily. 

Crypto Services

Xapo Bank’s Bitcoin Vault is a state-of-the-art storage system with a distributed key infrastructure. Security features include biometric access, 48-hour withdrawal delays, and video surveillance. 

Users can engage in crypto trading as well, with institutional-grade pricing through a partnership with FalconX. Users can save up to 90% on trading fees with competitive spreads.

xapo falconx

Xapo also integrated Lightning Network support for fast Bitcoin transactions. Users can still opt to choose standard or high-priority Bitcoin withdrawals. 

USDC and USDT transactions are also supported via the Ethereum network with dynamic conversion rates. 

Debit Card Services

The Xapo Debit Card, similar to other debit cards, is available in physical, virtual, and premium metal versions. Users can receive up to 1% in cashback on all spending, which is credited in Bitcoin. The card is available globally for online and in-store purchases. 

Wealth Management

Users have stock market access as well. You can trade blue-chip stocks from the S&P 500 and NASDAQ with a flat 1% trading fee, which is available 24/7 for non-US members. Users can buy and sell fractional shares to diversify investments without large capital requirements. Last but not least, users can automate a dollar-cost averaging (DCA) strategy supported by automated recurring purchases.

Additional Features

Xapo Bank has something called “Legacy Planning” which allows members to securely pass on Bitcoin and fiat funds to chosen heirs with some very simple steps. Users can choose many beneficiaries with customized fund allocations. 

One key feature is also the tailored support that members receive. Each member is assigned a personal account manager, with customer support also available 24/7.

Xapo Bank, similar to many digital banks, offers a mobile-first approach, but users can visit the Gibraltar headquarters if needed. The mobile app is very user-friendly and has a very good interface for managing accounts or using other services that the platform provides. 

Pricing Plans

The fee structure is quite transparent and clear. There is an annual fee of $1,000 which includes most of Xapo Bank’s premium services, including interest-bearing accounts, a personal account manager, and advanced security features. Bitcoin trading fees and withdrawals are based on blockchain network congestion as well as user priority (standard or high-priority transactions). Overall, these fees are relatively low compared to other players in the industry. 

USDC/USDT transactions have a 1:1 conversion rate with USD and NO additional fees. However, blockchain fees may apply when withdrawing via the Ethereum network. Low to zero fees for fiat transactions with USD, EUR, and GBP. 

In terms of the Xapo Debit Card, issuing the card is free for standard cards. Premium metal cards have other fees. ATM withdrawals also have fees due to third-party ATM operator fees. Additionally, similar to other banks, Visa/Mastercard for transactions in non-USD currencies has currency conversion rates. 

For stock trading, there is a flat 1% fee for buying and selling stocks (including fractional shares). No fees when using a DCA strategy. There are no other fees associated with storing crypto or maintaining savings accounts. 

Lastly, there may be restrictions in your account if fees such as the membership fee are not paid. 

Summary Table
Service Fee
Membership Fee $1,000/year
Bitcoin Trading Competitive fees with FalconX, up to 90% savings on spreads.
Bitcoin Withdrawals Blockchain fees (based on congestion and user priority)
USDC/USDT Withdrawals Blockchain fees (Ethereum network)
USD Transactions ACH: $0.50 + 0.1%, Fedwire: $20 + 0.1%
EUR Transactions Free SEPA deposits; minimal fees for withdrawals
GBP Transactions No fees for Faster Payments deposits and withdrawals
Debit Card Issuance Free for standard cards; fees for premium metal cards
ATM Withdrawals Third-party ATM operator fees may apply
Stock Trading Flat 1% fee
Savings Accounts No fees
BTC Vault No fees
Recurring Bitcoin Buys No fees
Blockchain Network Fees Dynamic (based on congestion)

Is Xapo Bank safe?

Xapo implements Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. This requires users’ proof of identity, source of funds, and proof of address before they create their accounts. Overall, Xapo Bank is pretty compliant and has received licenses and registrations such as:

  • Virtual Asset Service Provider (VASP): Xapo Bank is licensed by the Gibraltar Financial Services Commission (GFSC), operating under Gibraltar’s Financial Services Act 2019. This designation mandates adherence to strict compliance standards for virtual asset transactions.
  • E-Money License: Granted in Gibraltar, allowing Xapo to provide fiat custodial and transfer services.
  • Membership in the Gibraltar Deposit Guarantee Scheme (GDGS): Protects eligible fiat deposits up to €100,000.

Xapo also uses advanced security measures to safeguard client assets. Some of the key security features include:

Physical Security:

  • A distributed network of servers housed in secure locations worldwide.
  • Access is protected by biometric scanners, armed guards, and 24/7 video surveillance.

Digital Security:

  • Zero Trust Security Model: Every internal request undergoes strict verification, ensuring no unauthorized access.
  • Advanced Cryptography: Utilizes multi-party computation (MPC) protocols to protect private keys and prevent single points of failure.

Vault Security:

  • The BTC Vault includes multi-layered protections:
  • 48-hour withdrawal delay for added security.
  • PIN, biometric, and email authentication for transactions.
  • Separate from wallet and card transactions to ensure enhanced asset isolation.

Insurance Coverage:

  • Claims to be the first Bitcoin custodian fully insured against hacking and bankruptcy.
  • Fiat deposits are insured up to €100,000 under the Gibraltar Deposit Guarantee Scheme (GDGS).

Routine Audits:

  • Conducted by one of the Big Four accountancy firms.
  • Evaluates adherence to regulatory requirements and operational integrity.

Compliance Technology:

  • Uses AI-powered anti-malware systems for continuous monitoring.
  • Ensures compliance with PCI-DSS standards to protect payment card information.

Xapo also takes data privacy seriously as it does not share user balances or account details without client consent. Xapo also does a good job of providing customizable anti-phishing email codes to protect clients from fraud. Over the years, Xapo has also provided educational insights for its users so that they stay up-to-date with security best practices.

Xapo’s Position Globally

There’s several aspects that distinguish Xapo from other crypto banks, and even crypto crypto exchanges for that matter. In terms of security, Xapo’s insured Bitcoin vault and biometric-secured servers differentiate it in the market. Furthermore, putting Bitcoin first is a plus given that it has higher growth potential than other banks, and at the same time is less risky than other crypto banks that put other cryptocurrencies on the same pedestal. Also, interest rates on both Bitcoin and USD make Xapo very attractive for high-networth individuals. But there are also aspects that limit Xapo, including its annual fees, geographical limitations, and so on. Here is a SWOT analysis that we conducted for Xapo:

Strengths Weaknesses Opportunities Threats
Great security infrastructure with insured deposits. High annual membership fees compared to competitors. Expand debit card availability to underserved regions. Intense competition from crypto-native platforms as well as other banks.
Seamless integration of crypto and traditional banking services. Limited blockchain network support for USDT and other assets. Introduce more blockchain network options (e.g., Solana, BSC) to lower transaction costs. Regulatory challenges in key markets (e.g., Europe, U.S.).
High interest rates on Bitcoin and USD deposits. Geographical restrictions on key services like debit cards. Improve customer support consistency with AI-driven and human-assistance hybrids. User backlash over high fees and limited functionality.
Global reach with services available in multiple jurisdictions. Complaints about inconsistent customer support. Tap into growing demand for crypto custody among institutional clients. Rapid technological advancements from competitors.
Easy-to-use app interface designed for crypto enthusiasts. Diversify product offerings, including more crypto trading options and staking services.

User Experience and Customer Support

Xapo Bank has received a mix of reviews from its users, with a significant number of customers praising its innovative features, seamless integration of traditional and Bitcoin banking, and robust security measures. However, there are also critical voices highlighting issues such as high annual fees, inconsistent customer support, and limitations in services. We compiled a list of reviews via different media to gather an in-depth understanding of how users really feel about Xapo.

Positive Feedback

Innovative Services:

  • Many users appreciated the seamless integration between Bitcoin and traditional banking, allowing for real-time Bitcoin-to-USD transactions via the Xapo card.
  • Customers highlighted the app’s user-friendly design, making account management and crypto transactions straightforward.
  • The ability to generate interest on Bitcoin and USD deposits was praised by Bitcoin holders employing a HODL strategy.

Customer Support:

  • Several users mentioned that customer support was responsive and provided helpful solutions. Examples include resolving issues with misplaced transfers and explaining account features clearly.
  • Positive feedback on the speed of resolving disputes and personalized responses from support agents was noted.

Reliability and Security:

  • Customers praised Xapo Bank for its high level of security and reliability. The bank’s reputation as a safe and trustworthy institution for storing large amounts of Bitcoin was highlighted.
  • The swift delivery of debit cards and secure transactions contributed to the overall positive experience.

Negative Feedback

High Fees:

  • A major recurring complaint was the increase in the annual membership fee from $150 to $1,000, which many users found excessive.
  • Customers expressed dissatisfaction with the lack of proportional benefits to justify the fee hike, particularly for those who do not hold large Bitcoin balances.

Service Limitations:

  • Some users were frustrated by geographical restrictions on services, such as the unavailability of debit cards in certain countries or the inability to use ACH for USD transfers in some regions.
  • The lack of support for alternative blockchain networks (e.g., BSC or TRC) was a significant pain point for users seeking lower transaction costs.

Customer Support Issues:

  • While many users had positive experiences, others complained about inconsistent responses from customer service. Reports of delayed or automated replies, unresolved issues, and poor communication were prevalent.
  • Specific cases included blocked accounts, delayed card deliveries, and unresolved fund transfers.

FAQs

What is Xapo?

Xapo is a secure Bitcoin bank that combines traditional banking services with cryptocurrency features like Bitcoin storage and transactions.

Should I open an account with Xapo?

Open an account if you value secure Bitcoin storage, high-interest savings, and integrated Bitcoin banking services.

Can I make money with Xapo?

You can earn interest on Bitcoin and USD deposits and benefit from secure storage and trading options.

What do I need to get started with Xapo Bank?

You need a valid ID, proof of address, and a minimum deposit to activate your account.

How do I contact Xapo Bank’s support?

Contact support via the Xapo app or email at [email protected] for assistance.

What are the conditions and fees required for a Xapo card?

You must have an active Xapo account, and annual membership fees apply based on your plan.

How do I log in to my account?

Log in using your registered email and authenticate via the app’s verification process.

What transaction types are supported?

Xapo supports Bitcoin transactions, fiat transfers, and payments using debit cards.

What are my Xapo card’s spending limits?

Xapo cards have customizable daily spending limits, which you can set within the app.

Is Xapo Bank safe and legitimate?

Yes, Xapo is licensed by the Gibraltar Financial Services Commission and offers robust security features.

What are Xapo Bank’s benefits?

Xapo offers secure Bitcoin storage, high interest rates, global payment options, and seamless crypto-fiat integration.

How can I access the new Xapo Bank app?

Download the Xapo Bank app from your device’s app store and log in with your credentials.

Can I buy crypto with Xapo?

Yes, you can purchase Bitcoin and other cryptocurrencies using your Xapo account balance.

Conclusion

Xapo Bank uniquely blends traditional banking with cryptocurrency, offering great security, high-interest Bitcoin and USD deposits, and seamless user experiences. Its innovative Bitcoin features, including real-time conversion and insured vaults, distinguish it in the market. However, challenges such as high fees, limited regional availability, and inconsistent customer support require attention. These issues also present opportunities for Xapo to refine services and strengthen its market position.

To grow, Xapo must reconsider its fee structure by introducing tiered plans for diverse users. Expanding regional access to debit cards and ACH transfers will attract more clients. Adding blockchain networks like BSC and Solana can reduce fees and improve usability. Improving customer support through better training and hybrid AI-human models will enhance satisfaction. Transparency in service limitations during onboarding will build trust, while targeted marketing can highlight the security and value of Xapo’s offerings. Stronger partnerships with fintechs and blockchain networks can expand its ecosystem and services. 

Xapo Bank has the potential to lead in crypto-friendly banking by offering secure, innovative solutions for Bitcoin and fiat users.