Wednesday

Bitcoin

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.</div>



<p class="has-drop-cap">On Wednesday, March 22nd, Xapo bank <a href="https://www.prnewswire.com/news-releases/xapo-bank-becomes-the-first-fully-licensed-bank-to-enable-usdc-deposits-and-withdrawals-301778907.html" target="_blank" aria-label=" (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">announced </a>it is now offering USDC deposits and withdrawals to its customers with a 1:1 conversion rate with USD. According to the press release, Xapo is now the first fully licensed bank to offer the stablecoin in such a way. It is a member of the Gibraltar Deposit Guarantee Scheme (GDGS) and, as such, guarantees deposits up to $100,000.</p>



<h3 id="xapo-now-offers-usdc-withdrawals-and-deposits">Xapo Now Offers USDC Withdrawals and Deposits</h3>



<p>According to the Wednesday press release, the private Xapo bank partnered with the stablecoin issuer Circle to start offering USDC deposits and withdrawals. The bank stated the conversion rate with the dollar will be 1:1 and, since it is a member of the Gibraltar Deposit Guarantee Scheme (GDGS), it guarantees deposit of up to $100,000. The press release also points out that Xapo does not engage in staking or has exposure to the surrounding crypto markets:</p>



<blockquote class="wp-block-quote">
<p>A fully licensed and regulated bank, Xapo Bank is a member of the Gibraltar Deposit Guarantee Scheme (GDGS), meaning that Xapo Bank guarantees its members&#8217; USD deposits up to *$100,000 USD equivalent. Ensuring member protection, Xapo Bank does not engage in staking of any crypto deposits and it does not have any exposure to surrounding crypto markets as all deposits are automatically converted to USD held by the Bank.</p>
</blockquote>



<p>The bank also explains it does not partake in lending and does not depend on fractional reserve banking in its business model. Xapo also stated that depositors can benefit from a 4.1% annual interest rate and use the stablecoin payments as an alternative to SWIFT. The private bank, founded in 2013, also serves as a Bitcoin custodian.</p>



<p><a href="https://www.circle.com/en/usdc" target="_blank" aria-label=" (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">USDC</a> is a dollar-backed stablecoin issued jointly by Circle and the cryptocurrency exchange Coinbase. It recently found itself under significant pressure after it was revealed that a significant portion of its reserves was held in the now-collapsed Silicon Valley Bank. The stablecoin, however, <a href="https://tokenist.com/is-usdc-really-at-risk-a-deep-dive-into-reserves/" rel="dofollow" class="deco-link">after some stuttering</a>, successfully maintained its stability.</p>


<div class="cta-referral">

			<img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async">
	
	<div class="cta-referral__text">
		<p>Join our <a href="https://t.me/thetokenist" target="_blank" rel="noreferrer noopener nofollow">Telegram group</a> and never miss a breaking digital asset story.</p>

	</div>

</div>


<h3 id="usdc-remains-stable-throughout-stablecoin-and-banking-crises">USDC Remains Stable Throughout Stablecoin and Banking Crises</h3>



<p>While the downfall of three US banks in five days sent shockwaves throughout the banking industry, the closing of SVB had a notable effect on USDC. Soon after California regulators stepped in, it was <a href="https://twitter.com/circle/status/1634391505988206592" target="_blank" aria-label=" (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">revealed</a> that $3.3 billion of the stablecoin’s reserves were held with the now-fallen bank.</p>



<p>The news kickstarted a tense weekend between March 10th and 13th as redemptions surged. As a result, the stablecoin slightly lost its peg sparking worries about USDC’s actual stability. The turbulence never turned into a calamity, however, and the stablecoin quickly recovered its peg <a href="https://tokenist.com/crypto-market-liquidity-improved-significantly-as-usdc-regains-dollar-peg/" rel="dofollow" class="deco-link">significantly helping the liquidity of the cryptocurrency markets</a> in the process.</p>



<p>Already in February, a certain level of uncertainty surrounding stablecoins emerged after a regulatory onslaught against another major coin—BUSD. In a matter of days, New York regulators ordered its issuer to stop minting the Binance-branded token, and the SEC sent a Wells notice <a href="https://tokenist.com/paxos-strongly-disagrees-with-sec-on-busd-willing-to-vigorously-litigate/" rel="dofollow" class="deco-link">alleging it is an unregistered security</a>. Despite the concerns, the actions have yet to develop into a broader effort targeting stablecoins.</p>


<div class="cta-sub js__cta-sub">

	<div class="cta-sub__start" data-step="1">

					<div class="cta-sub__title"><strong>Finance is changing.</strong></div>
							<div class="cta-sub__subtitle">Learn how, with Five Minute Finance.</div>
							<div class="cta-sub__excerpt">A weekly newsletter that covers the big trends in FinTech and Decentralized Finance.</div>
							<button type="button" class="btn">Try it out (for free)</button>
			</div>

	<div class="cta-sub__form" data-step="2" style="display: none;">
									<script type="text/javascript"
						src="https://app.getresponse.com/view_webform_v2.js?u=QcLhh&#038;webforms_id=zw3Wv"></script>
						</div>

	<div class="cta-sub__result" data-step="3" style="display: none;">
		<div class="cta-sub__title">Awesome</div>
		<div class="cta-sub__caption">You&#8217;ve subscribed.</div>
		<div class="cta-sub__greeting">You&#8217;re well on your way to being in the know.</div>
	</div>

</div>



<p><strong><em>When will the first US-based bank start offering stablecoin withdrawals and deposits? Let us Tell us what you think in the comments below.</em></strong></p>
<p>The post <a rel="nofollow" href="https://tokenist.com/xapo-is-now-first-fully-licensed-bank-to-offer-usdc-withdrawals-and-deposits/">Xapo is Now First Fully Licensed Bank to Offer USDC Withdrawals and Deposits</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Xapo is Now First Fully Licensed Bank to Offer USDC Withdrawals and Deposits

Зміст

Tokenist

Інші статті, опубліковані 22 бер. 2023 р.

SEC Charges Justin Sun With Securities Law Violation

Crypto Industry Experts Optimistic about Hong Kong as a New Crypto Hub

Bitcoin Price Analysis: Volatility Awakened - 24 March 2023

[Feature] Arbitrum Takes The Stage: Basics, Airdrop, & Beyond

Trading of PETN is halted till further notice

WEMIX3.0 Mainnet Q1 Update (v0.10.2)

Приєднуйтеся до нашої безкоштовної розсилки для отримання щоденних оновлень щодо крипто!