Xapo Bank Review 2025: What To Know About The Pros, Cons, & Features
Our Take On Xapo Bank
THE BOTTOM LINE:
Xapo Bank is a solid pick if you’ve got a chunk of $BTC and want a safe, regulated place to manage it, plus perks like a debit card and Bitcoin-backed loans.
Its banking license and daily interest on $BTC and USD set it apart from the usual crypto apps, but keep in mind that the $1,000 membership fee might be too steep for casual users.
Overall, it’s a secure, no-nonsense way to bridge the gap between traditional banking and Bitcoin.
Pros
- Regulated bank with strong security
- Earn interest on fiat and $BTC
- Bitcoin-backed loans
- Debit card with $BTC cashback
- Quick customer service
Cons
- $1,000 annual membership fee
- Only $BTC supported (no altcoins)
- Limited interest on $BTC
- ATM fees over $100 withdrawals
Xapo Bank Overview
| Asset Support | USD and $BTC |
| Interest Rates | • 0.5% APR on $BTC (Up to 5 $BTC)•3.9% APR on USD |
| Availability | Outside the US only. Debit card not supported in some countries |
| Debit Card Features | • Up to 1% cashback in $BTC • 0.1% crypto conversion fee • 2% fee for ATM withdrawals over $100 |
| Membership Fee | $1,000 per year |
| Security and Compliance | • Regulated by the Gibraltar Financial Services Commission (GFSC) • SOC 2 Type II certified • PCI-DSS compliance • Regular audits by PwC • Gibraltar Deposit Guarantee Scheme |
What Is Xapo Bank?
Xapo Bank is a unique platform that combines traditional banking with Bitcoin.
It started out back in 2013 as a Bitcoin wallet and vault service, but today it’s evolved into a fully-licensed bank based in Gibraltar.
What makes Xapo Bank stand out the most is the fact you can hold both US dollars and Bitcoin in one account – as well as earn interest on each.
Currently, Xapo customers get 0.5% on $BTC balances (up to 5 $BTC) and 3.9% on USD deposits. That means your money keeps growing, even if you’re not actively trading.
Xapo Bank also lets you buy and sell Bitcoin at competitive prices, often with lower fees than big players like Coinbase or Kraken.
And if you need cash but don’t want to sell your Bitcoin… no problem. Xapo offers Bitcoin-backed loans, so you can borrow cash using your crypto as collateral.
Xapo Bank is fully regulated by Gibraltar’s Financial Services Commission (GFSC) and partly by the UK’s FCA, and they back it up with top-notch security like SOC 2 Type II, PCI-DSS, and regular audits to keep your funds safe.
Finally, they wrap everything up in an easy-to-use mobile app, giving you quick access to your Bitcoin and dollars, payments in multiple currencies, and even investing in US stocks.
Xapo Bank Key Features
Here are the key features you can expect as a Xapo Bank customer:
- Hold Both Bitcoin and USD in One Account: You can store and manage both your $BTC and USD side by side in one place, making it easy to switch between the two.
- Earn Interest on Bitcoin and USD: Xapo pays daily interest on both Bitcoin (0.5% APR on up to 5 $BTC) and US dollars (3.9% APR), so your money keeps growing without much effort.
- Buy and Sell Bitcoin with Low Fees: Trade between $BTC and USD with lower fees than many other platforms like Kraken or Coinbase – but keep an eye on the spread.
- Bitcoin-Backed Loans: Borrow cash using your Bitcoin as collateral instead of selling it. This lets you keep your crypto, while getting access to liquidity.
- One App for Everything: Manage your Bitcoin, USD, and investments in one place. The app lets you buy, send, and spend Bitcoin, make payments in multiple fiat currencies and stablecoins… and even invest in US stocks.
- Xapo Bank Card: A global debit card that lets you spend from your USD or Bitcoin balance, with no foreign exchange fees. You also earn up to 1% cashback in $BTC every time you use it.
Xapo Bank Fees
The most major fee that Xapo Bank charges is its annual membership fee of USD $1,000 for its services.
This covers features like a USD and $BTC bank account, an international debit card, and more.
When it comes to payments, fees vary depending on how you send or receive money. Local payments are cheaper, while international transfers and crypto transactions ($USDT/$USDC) may include blockchain fees and spreads, depending on market conditions.
Withdrawals at ATMs are free up to $100 per month, after which a 2% fee applies. Stock trades through Xapo Wealth come with a 1% fee, plus some very minor regulatory fees.
For crypto, swapping between fiat and Bitcoin comes with no transaction fees, but applies a spread of 0.10% on the quoted price.
A full breakdown of fees can be found here.
| Annual membership | USD $1,000 per year |
| Faster Payment (UK) | £0.15 per transfer |
| SEPA (Europe) | Receiving: €0.10 |
| FedACH Deposit | $0.50 + 0.1% of transaction value |
| FedWire Deposit | $20 + 0.1% of transaction value |
| FedACH Withdrawal | $30 + 0.15% of transaction value |
| ATM withdrawals | Free up to $100 per month, then 2% of the withdrawal amount(ATM operator fees may apply) |
| Debit Card Payments (USD and foreign currency) | Free (operator fees may apply) |
| Stock Trades | 1% of trade value + TAF + SEC Fee |
| Bitcoin Exchange Spread | 0.10% of transaction value |
| Lightning Network Payments | No fee |
| Unsubstantiated Dispute Fee | $45 |
| Replacement Cards | First replacement free, $25 for additional replacement within a year, $100 for an emergency replacement (+ shipping) |
Our Expert Review of Xapo Bank
I’ll be real with you – I didn’t cough up the 4-figure membership fee just to try out Xapo Bank.
What I did do, however, was a deep-dive into its main features and customer service, so I could give you the finer details of each of them.
Here’s what I found:
Signing Up for Xapo
Signing up with Xapo Bank is pretty straightforward. Like any bank, they start with identity verification before you can get going.
First, you’ll need to provide an ID or passport and take a quick selfie – this helps them verify your identity and keep your account secure.
Then, you’ll fill in some personal details using your phone and set up some security measures to protect your account. Keep in mind that it can take 2-3 business days for Xapo to review your application.
Finally, it’s important to note Xapo Bank’s membership isn’t exactly cheap…it costs $1,000 per year.
This is likely to be a sticking point for many users, and might rule out a lot of smaller would-be customers.
Once you’re all set, you’ll get access to everything Xapo Bank offers, from fast Bitcoin transactions to earning interest and personal service.
Earning Interest on your Funds
Xapo Bank lets you earn on both Bitcoin and USD balances, without locking anything up or dealing with hidden fees.
You earn 0.5% annual interest on your first 5 $BTC and 3.9% annual interest on your USD, both paid out daily in $BTC.
They use super safe investments like short-term US treasury bonds to fund this, so your Bitcoin stays safe and accessible at all times.
This gives you a slow but solid way to grow your Bitcoin stack while keeping everything straightforward and risk-minimized.
Debit Card
Xapo Bank’s debit card is a great pick if you’re looking to spend your $BTC or USD anywhere in the world.
As part of your annual membership, you get a sleek metal debit card that lets you shop and withdraw cash in over 100 countries.
There are no hidden fees on transactions, even for international purchases, and you can easily spend both your USD and $BTC.
What’s really nice is that you get up to 1% cashback in Bitcoin on every qualifying purchase. No gimmicky points or tokens, just real $BTC back to your wallet.
The card comes with high spending limits, so you can handle anything from your daily coffee to bigger buys (some members have even bought cars with it!). You can even hold multiple virtual cards for secure online shopping.
Just keep in mind that ATM withdrawals over $100 come with a 2% fee.
Xapo charges a low 0.1% spread on Bitcoin-to-fiat transactions, which makes it nice and cheap to spend your stored $BTC.
I did notice that some customers had complained that their country of residence wasn’t eligible for Xapo’s debit card, so you may want to check that your country is supported before signing up.
Bitcoin-Backed Loans
Xapo Bank also lets you tap into your Bitcoin’s value without actually selling it, thanks to their Bitcoin-backed loans.
You can borrow up to USD $1 million using your $BTC as collateral, with flexible loan-to-value (LTV) ratios ranging from 20% to 40%.
Interest rates are pretty reasonable, starting at around 10% a year, and you can pick loan terms anywhere between 1 and 12 months.
Your Bitcoin stays safe in custody (Xapo doesn’t lend it out or re-use it) so you can relax knowing it’s secure.
The borrowed cash will land in your Xapo Bank account instantly once your loan is approved.
From there, you can spend it with your Xapo debit card, send it by bank transfer (USD, EUR, GBP), or even withdraw it in crypto like $BTC, $USDT, or $USDC.
There are also no hidden fees or penalties if you want to pay it off early.
Customer Service
Xapo provides customer service through a variety of ways, starting with its FAQ and Help Center pages.
Each of these does a decent job at answering common questions about the platform and its services.
If you prefer to get one-on-one assistance, you can also navigate to Help > “Chat with Us” within the Xapo Bank app, or simply send an email to [email protected].
Xapo claims to have its customer service manned 24 hours a day, Monday to Friday, all year round – which is great if true.
When I submitted a basic question to the support email, I was pleasantly surprised to get a response in less than an hour. Pretty reassuring.
Lastly, to freeze your card, report it as lost or stolen, or report issues with transactions, customers can get in touch with Xapo via their Interactive Voice Response (IVR) number at +350 200 77714.
Who’s Xapo Bank For?
- High Net Worth Bitcoin Investors: People who have a lot of crypto and want a safe place to store and manage it, while still getting the usual banking perks like debit cards and easy payments.
- Frequent International Money Senders: For people who want to move money across borders, Xapo makes it super easy with international transfers, smooth currency conversions, and simple on- and off-ramps for Bitcoin.
- Bitcoin Holders Focused on Growing Their Wealth: People who want to earn interest on their USD while still having the flexibility to access your Bitcoin whenever they need it.
- Bitcoin Owners Looking for Quick Cash Without Selling: People who want to leverage their Bitcoin without selling it, with the freedom to borrow, invest, or spend while still holding on to their $BTC.
Who’s it Not For?
- Casual or Small-Scale Bitcoin Users: People who are just dipping their toes into Bitcoin, like a few hundred bucks here and there, probably don’t need all of Xapo’s fancy security, banking perks, or liquidity features – not to mention the price tag for membership.
- Traditional-Only Savers: People who stick to regular banks, savings accounts, or even just keep your cash under the mattress (and not into crypto at all).
- Day Traders or High-Frequency Crypto Traders: People who buy and sell Bitcoin multiple times a day and need fast, advanced trading tools, may be better off using a dedicated crypto exchange.
Xapo Bank Alternatives
Xapo Bank vs. Wirex
Xapo Bank, licensed in Gibraltar, gives you a safe place for your Bitcoin and reliable USD banking too. Wirex, over in the UK, is all about crypto debit cards and easy swaps between cash and crypto – but it’s not a bank.
The biggest difference is that Xapo’s regulation means better protection, while Wirex goes for more flexibility and higher crypto yields.
| Xapo Bank | Wirex | |
| Banking License | Yes (Gibraltar) | No |
| Crypto Support | Bitcoin only | Multi-currency |
| Custody Service | Built-in | Built-in |
| Debit Card | Yes | Yes |
| Loans | Bitcoin-backed | Not widely offered |
| Savings/Interest | 0.5% APR on $BTC balances (up to 5 BTC), 3.9% APR on USD | Up to 10% on $BTC, $ETH (X-Accounts) |
| Fiat Functionality | Full (USD accounts, transfers) | Limited (conversions, spending only) |
| Focus | Security & Banking | Payments & Usability |
Xapo Bank vs. Nexo
Again, Xapo Bank uses its banking license to offer a blend of $BTC and fiat services, while Nexo focuses on buying, trading, and storing different cryptocurrencies – plus high-yield savings and loans.
Nexo focuses on crypto variety and higher returns. Xapo’s yields are modest, while Nexo’s are more generous.
| Xapo Bank | Nexo | |
| Banking License | Yes (Gibraltar) | No |
| Crypto Support | Bitcoin only | Multi-currency |
| Custody Service | Built-in | Built-in |
| Debit Card | Yes | Yes |
| Loans | Bitcoin-backed | Crypto-backed |
| Savings/Interest | 0.5% APR on $BTC balances (up to 5 BTC), 3.9% APR on USD | Up to 14% on crypto (Flex Earn) |
| Fiat Functionality | Full (USD accounts, transfers) | Limited (conversions, spending only) |
| Focus | Security & Banking | Trading & Earnings |
Xapo Bank vs. Coinbase
Xapo Bank’s regulated setup lets you store Bitcoin securely and manage fiat with USD accounts and crypto-backed loans.
Coinbase is all about buying, selling, and trading lots of different cryptocurrencies, with separate custody – but no banking license. Xapo offers modest crypto interest, while Coinbase doesn’t let you earn interest on $BTC.
| Xapo Bank | Coinbase | |
| Banking License | Yes (Gibraltar) | No |
| Crypto Support | Bitcoin only | Multi-currency |
| Custody Service | Built-in | Separate (Coinbase Custody) |
| Debit Card | Yes | Yes |
| Loans | Bitcoin-backed | Not widely offered |
| Savings/Interest | 0.5% APR on $BTC balances (up to 5 BTC), 3.9% APR on USD | Limited/no focus |
| Fiat Functionality | Full (USD accounts, transfers) | Limited (conversions, spending only) |
| Focus | Security & Banking | Trading & Exchange |
Is Xapo Bank Safe to Use?
Xapo Bank Founders
Xapo Bank was started by Wences Casares, a well-known fintech entrepreneur and big-time Bitcoin advocate.
Casares is from Argentina, where he grew up seeing economic instability and hyperinflation first-hand. This inspired his belief in Bitcoin as a safe alternative to traditional money.
Before Xapo, he founded Internet Argentina (one of the first internet providers in the country) and Wanako Games – a video game company he sold in 2007.
He launched Xapo in 2013 as a Bitcoin wallet and a secure storage service. Since then, it’s grown into a fully regulated bank in Gibraltar, blending regular banking with Bitcoin services.
He now serves as Executive Chairman, steering Xapo’s overall strategy.
Who Has Invested in Xapo Bank?
Xapo raised some pretty impressive backing, pulling in $40 million across two rounds.
Their first $20 million came from Benchmark, along with Fortress Investment Group and Ribbit Capital – big names in the tech and fintech world.
They raised a further $20 million in a follow-up round led by Greylock Partners and Index Ventures, plus other heavy-hitters like Max Levchin, Yuri Milner, and Jerry Yang.
These investors bring in plenty of fintech credibility, which definitely gives Xapo’s growth plans a solid boost.
Where is Xapo Bank Licensed and How Do They Handle Compliance?
Xapo Bank is fully licensed and regulated as both a bank and a Virtual Asset Service Provider (VASP).
They’re regulated by the Gibraltar Financial Services Commission (GFSC) and have limited regulation from the UK’s Financial Conduct Authority (FCA).
On top of that, they get independent audits done regularly by big names like PwC, and have certifications like SOC 2 Type II and PCI-DSS to keep your money and personal info protected.
Even with strong compliance measures like KYC and AML, your Bitcoin balances stay private and are never shared without your permission.
When it comes to the protection of your funds, your fiat deposits are covered up to the Euro equivalent of €100,000 by the Gibraltar Deposit Guarantee Scheme.
This, however, doesn’t cover your $BTC deposits.
Final Thoughts On Xapo Bank
Xapo Bank is the perfect option for big time Bitcoin holders who conduct plenty of transactions between $BTC and fiat.
If you have a decent stack of Bitcoin, Xapo lets you easily spend it, earn interest on it, borrow against it, and more – providing a solid bridge into the traditional banking world.
Now if you’re a smaller user or just want to play around with Xapo’s features, they don’t make it easy. The annual $1,000 membership fee keeps small fish out, so you likely won’t want to take the plunge unless you’re looking to conduct some serious business.
However, with decent oversight and all of the security measures you’d ask of a normal bank, Xapo Bank provides an amazing hybrid platform.
Xapo Bank Frequently Asked Questions
No, Xapo Bank isn’t available to US residents at this time. It’s currently open to customers outside the US only – double-check if your country is supported.
No, Xapo Bank only supports Bitcoin for crypto. If you’re looking for services such as earning interest or borrowing against other coins, you’ll need to find another platform.
Xapo Bank should be quite safe, using top-notch security measures like SOC 2 Type II, PCI-DSS, and conducting regular audits by firms like PwC. They also keep your Bitcoin in secure custody, never lending it out or rehypothecating it.
Almost. The Xapo debit card works in over 100 countries, but some countries may not be supported. It’s best to double-check with Xapo to see if your location is eligible.
Xapo Bank charges a $1,000 annual membership fee to cover its regulated banking services, including USD accounts, Bitcoin custody, and a global debit card.
It’s a premium service designed for serious crypto users who want security and a seamless banking experience.
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