Xapo, a leading cryptocurrency custodial service and licensed bank, has joined forces with Circle to offer support for the USDC stablecoin and facilitate payments using it.
This partnership is expected to result in the creation of a payment infrastructure similar to the SWIFT interbank transfer system, which will bring about significant cost reductions and faster payment processing times.
However, it’s worth noting that USDC will not be stored on Xapo wallets – deposits will be automatically converted to US dollars, with users receiving interest income of 4.1% per annum.
Xapo’s achievement of being the world’s first bank to fully integrate USDC is indeed a remarkable feat. Customers can now send and receive stablecoins from their USD accounts without any extra charges.
The bank’s unique business model sets it apart from traditional banks, as it doesn’t provide credit services and keeps all customer funds. Instead, Xapo “invests funds in a short-term highly liquid assets” to pay interest to its users.
It’s worth mentioning that Xapo Private Bank recently announced its support for Bitcoin payments via the Lightning Network solution in early March. With these recent developments, Xapo has cemented its position as a game-changer in the cryptocurrency industry.