By
Tolu Ajiboye
April 18th, 2024
Customers of the bank may now use the world’s largest stablecoin for payments.
Gibraltar-based Xapo Bank has further established itself as one of the world’s most crypto-friendly institutions. In its most recent move, the bank is set to allow its clients to make Tether (USDT) deposits and withdrawals, starting from the end of the month.
This implies that customers of the bank may now use the world’s largest stablecoin for payments. Moreover, the development also provides a “faster and cheaper” alternative to the commonly-used SWIFT method. According to the bank, transactions will not incur fees.
Xapo Bank Says There’s High Demand for Stablecoin Payments
It should be mentioned that the 10-year-old bank appears to have a strong interest in stablecoins. In March, the retail-focused bank launched a similar service for USD Coin (USDC). Interestingly, the USDC service has seen at least $48 million worth of deposits and over $4.5 million in withdrawals in the short period.
This significant desire is what Xapo Bank hopes to build on when it launches its USDT services at month’s end. The bank wrote in part:
“Xapo Bank has seen a strong appetite for the efficiency of stablecoin deposits and withdrawals from its members.”
Meanwhile, the growing interest of customers in stablecoins, such as USDT, can be linked to only one thing. That is their ability to offer similar benefits as other cryptocurrencies without their usual volatility. It is a rare opportunity for users who intend to keep their funds in the crypto ecosystem without having to worry about sharp fluctuations.
Xapo Bank CEO Seamus Rocca has also shared some of the aims of the bank regarding stablecoin support. Rocca first hailed the bank as the only traditional bank to have added support for stablecoin payment. According to him, Xapo has achieved this in a way that combines the compliance and safety of traditional banking with the wide use cases and efficiency of USDT.
Furthermore, he says the addition is a step in the direction. This is because the bank hopes to take out the long and expensive deposit and withdrawal processes of regular banks. Overall, Rocca added that Xapo is committed to helping its clients to grow their wealth and access it seamlessly.