*Cryptoasset services are provided by Xapo VASP Limited, a DLT Provider regulated by the Gibraltar Financial Services Commission (GFSC) under Permission No. 26061 and are currently unregulated in the UK. Xapo Bank Limited is regulated as a credit institution by the GFSC under Permission No.23171. Cryptoasset deposits are not covered by the Gibraltar Deposit Guarantee Scheme.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
This Financial Promotion was approved by Xapo Bank Limited on 11 July 2025
Xapo Bank is a unique player in the digital banking and crypto sector. The bank is bridging the Bitcoin world and traditional banking services to offer features that could serve users who want to store, grow, and spend BTC alongside their fiat currency.
This is a growing need, especially as cryptos are now getting into the hands of traditional investors through ETFs, and they are becoming assets that cannot be ignored in the fast-paced digital world.
Is Xapo Bank the right choice for everyone? We will determine that in this review as we dig deeper into what the bank brings to the table and check out its features, benefits, drawbacks, and everything else you need to know before signing up.
What is Xapo Bank?
Xapo Bank is a fully licensed private bank and Virtual Asset Service Provider (VASP), regulated by the Gibraltar Financial Services Commission (GFSC). As mentioned earlier, it was established to be a bridge between traditional finance and Bitcoin, two distinct worlds that operate differently.
The bank is targeting individuals who are globally minded and want secure banking services that offer modern capabilities. This makes it different from traditional banks that do not offer crypto dynamism and are strict about providing only fiat currency services.
There are some features that make this integration possible. Xapo Bank allows its users to manage their Bitcoin and fiat balances in a single application and even earn daily interest paid in BTC. They can also trade Bitcoin and gain access to unique financial products like Bitcoin-backed loans.
Xapo Bank is not new but continues to evolve to meet the growing needs in the finance world. It has been around since 2013, building its reputation and offering innovative services that allow BTC holders who want more utility for their assets to find it useful.
Let’s take a deeper look at some of its main features in the next section:
Main Features of Xapo Bank Service
There are a number of features that make Xapo Bank stand out. They include BTC custody, its globally accepted debit card, and user-friendly mobile apps. The bank also offers high-yield savings and competitive loans that are backed by Bitcoin.
All these services are aimed at making it easy to serve users of the traditional fiat system and crypto. It also incentivizes them by offering full control over their BTC and fiat funds as they earn rewards and unlock liquidity.
Security
Security is a big selling point for Xapo Bank. The bank has a long-standing history of trusted BTC storage, operating secure vaults designed to keep members’ Bitcoin safe. Xapo’s security measures include advanced multi-signature technology, offline cold storage, and geographic distribution of assets to minimize risks of theft or loss.
For BTC-backed loans, collateralized Bitcoin remains untouched in Xapo’s secure custody. It is never lent out or rehypothecated, giving members peace of mind that their assets won’t be exposed to third-party risks.
The bank secures BTC funds using multi-party computation (MPC). They are protected using a decentralized key system that continuously generates “shards” of a master key using a threshold signing mechanism.
These keys are encrypted and stored in separate and undisclosed locations so that even none of the security team knows where all the shards are at any time. The platform also employs a 24/7 watch over more than 100 controls around the clock.
You can learn more about their security system directly on Xapo’s security page.
Debit Card
The Xapo Bank debit card is another highlight of the platform as it enables global spending in both USD and BTC. The card comes as a premium metal card for members and allows purchases and ATM withdrawals in over 100 countries.
Members can earn up to 1% cashback on every transaction, paid directly in Bitcoin. Unlike many traditional or crypto cards, the Xapo crypto debit card has no foreign transaction fees, unlimited free foreign exchange, and offers high spending limits. It supports large purchases like buying a car and comes with the ability to create multiple virtual cards for secure online transactions.
Fees
Xapo Bank’s premium membership requires a $1,000 annual subscription fee. While this may seem higher than typical online banks, Xapo is fully transparent about its pricing and charges most other fees at cost — without hidden markups. This stands in contrast to many traditional and digital banks that often earn significant revenue from hidden fees.
The membership includes access to premium services such as a BTC cashback debit card, high-yield USD savings, BTC-backed loans with competitive rates, and zero-fee Bitcoin trading with an ultra-low 0.1% spread — a rate usually reserved for institutional clients.
Additionally, Xapo charges no foreign exchange (FX) fees, and ATM withdrawals are free up to $100 per month (2% fee afterward). Payment network fees (e.g., SWIFT) are also charged at cost. A comparison calculator on Xapo’s website highlights how its transparent pricing can result in better value, particularly for Bitcoin holders.
BTC-Backed Loans
The platform also offers lending services through Xapo Credit Limited. With this, Xapo is able to serve its users with Bitcoin-backed loans that give users access to liquidity while they still retain their BTC holdings. Borrowers can get loans of up to USD 1 million instantly with flexible terms from 1 to 12 months.
Loan-to-value (LTV) ratio is between 20 and 40%, and annual interest rates start at around 10% and vary based on market conditions. Xapo Bank also claims to be transparent about its fees. There are no hidden fees or early repayment penalties.
Members can repay at any time without needing to worry about extra costs. The loan approval process does not get delayed since it is based on users’ Bitcoin HODLing history. The loan proceeds can also be spent immediately using the Xapo debit card or withdrawn through bank transfer or crypto transfer.
Savings and Earnings
Xapo Bank also provides interest-earning opportunities on both USD and BTC holdings. USD deposits can earn up to 3.9% APY, and there is coverage of up to EUR 100,000 and its equivalent under deposit protection.
For Bitcoin deposits, members will be able to earn up to 0.5% APY on up to 5 BTC. The payment of interest is also made in BTC, which could be a way for members to also grow their BTC holdings over time.
Trading
Members of Xapo Bank can trade Bitcoin directly through the Xapo app. Some of the advantages of this trading app include an ultra-competitive 0.1% spread.
This makes Xapo one of the cheapest options for BTC trading, especially considering the absence of extra trading fees.
The tight spread could also be a big advantage for traders as it reduces the rate at which fees eat into potential profit and gives users more to keep.
Customer Support
Xapo Bank communicates with its members and has various channels users can reach out for help. You can chat live with support right inside the Xapo app any day of the week. Each member also has a dedicated account manager who can provide personal help.
You can set up calls with your manager through the app. You can also reach customer support at [email protected] for help with any issues.
In addition, Xapo Bank is available physically for those who want face-to-face assistance at their office in Gibraltar. If you’re unhappy with the support you receive, you can file a complaint that can be escalated to management or even to the financial regulator.
Here are Xapo Bank’s official domains and social media pages: xapobank.com, xapo.com, (X) Twitter, Instagram, LinkedIn, and Facebook.
User Experience
Xapo Bank offers an easy-to-use and intuitive user experience for members, including Bitcoin holders who want to integrate crypto with traditional banking.
The application has a minimalistic design that makes it easy to manage USD (fiat) and BTC at the same time.
Compliance and Regulation
Xapo Bank is licensed and overseen by the Gibraltar Financial Services Commission. This ensures they follow strict rules to keep members’ fiat funds and Bitcoin safe. Fiat deposits are protected up to EUR 100,000 per person under Gibraltar’s Deposit Guarantee Scheme.
The platform also requires identity checks and anti-money laundering checks when opening an account in accordance with the law. Xapo Bank makes an effort to meet top security standards, and it undergoes constant security audits.
Crypto services are handled by a separate regulated company under Xapo, and crypto deposits are not covered by the Gibraltar Deposit Guarantee Scheme.
Pros: Why Xapo Bank Stands Out
Below are some of the advantages of using Xapo Bank:
A Real Bank for Bitcoin Users
Xapo Bank is a fully licensed private bank and VASP regulated by the Gibraltar Financial Services Commission. With this, your money and Bitcoin are protected under strict rules. This could be an advantage over unregulated crypto platforms.
Earn Interest on Dollars and Bitcoin
Xapo Bank also provides facilities that can help you grow your savings. Your USD deposits can earn up to 3.9% a year, and your Bitcoin can earn up to 0.5% on the first 5 BTC you keep with them. Even better, your Bitcoin interest is paid in Bitcoin, so you keep building your stack.
Cashback on Every Purchase
With the Xapo debit card, you get unlimited cashback up to 1% on everything you buy, and the cashback is paid in Bitcoin. The card works in over 100 countries with no foreign exchange fees, making it easy to spend anywhere without worrying about extra charges.
Borrow Without Selling Your BTC
With Xapo Bank, you don’t have to sell your Bitcoin if you need cash. You can borrow up to $1 million instantly using your BTC as collateral. The loans have flexible terms, and you can pay them back anytime without penalties. This lets you access money without giving up your Bitcoin.
Very Low Bitcoin Trading Fees
Xapo Bank offers one of the lowest Bitcoin trading costs you’ll find. Members get an ultra-low trading spread of 0.1%, which helps you save on fees whether you trade often or just once in a while. It’s a great way to trade BTC without losing money on high costs.
Cons: Where Xapo Bank May Fall Short
Here are some drawbacks regarding Xapo Bank:
High Annual Membership Fee
The biggest downside is the price. Xapo Bank costs $1,000 every year just to stay a member. If you don’t use the services often or don’t have a big balance, it’s hard to make that fee worth it.
Limited Access to Loans
Bitcoin-backed loans are not available everywhere. If you live in places like the UK, you can’t use this feature. That means some users will miss out on one of Xapo’s main benefits.
Best for Big Spenders
The debit card perks, like unlimited cashback, only really pay off if you spend a lot. If you don’t travel or buy big items often, you won’t get enough rewards to make the $1,000 fee worth paying.
Loans Can Be Expensive
Interest rates on Bitcoin-backed loans start at around 10% a year and can change based on market conditions. If you’re looking for the cheapest way to borrow money, this might not be it.
Strict Verification Process
Since Xapo is a regulated bank, members will have to complete full KYC and AML checks when signing up. Some crypto users might not be comfortable with this.
Best for High-Net-Worth Individuals
Xapo Bank is one of the few banks that combine the safety and regulation of a private bank with the benefits of modern crypto services. It positions itself to solve the needs of traditional fiat users and those who want to explore or already have BTC.
The platform’s unique offerings, like instant Bitcoin-backed loans and a debit card that can be used anywhere in the world with BTC cashback, also help people easily spend and grow their Bitcoin while keeping it safe.
However, the $1,000 yearly fee suggests it is best for serious Bitcoin investors or high-net-worth users who will actually use all these premium features. For those people, Xapo Bank provides an easy and secure way to manage both regular money and Bitcoin in one place.
The post Xapo Bank Review – Features, Security, Card, Fees, Pros, Cons appeared first on CaptainAltcoin.
