Xapo Bank: From the Gotthard bunker to crypto pioneer in Gibraltar!

Xapo Bank: From the Gotthard bunker to crypto pioneer in Gibraltar!

Xapo, originally founded in Silicon Valley in 2013 by Wences Casares, is considered the first Bitcoin bank in Switzerland. The company, which initially began as a security service for Bitcoin wallets, has now grown into a fully licensed digital private bank in Gibraltar. Loud finews.ch By moving to Gibraltar, Xapo optimized its structure and now offers services worldwide, but not in the USA.

In 2015, Xapo moved its headquarters to Zug to obtain a banking license and hired former UBS employees such as Olga Feldmeier. But despite these efforts, operators faced challenging regulatory requirements, including the need to run local servers and have a majority Swiss-based board of directors. In 2019, the company withdrew from Switzerland and the US to avoid regulatory challenges and sold its institutional custody business to Coinbase. These decisions encouraged the move to Gibraltar, a legal entity considered blockchain-friendly and enabling a global, remote-first business model.

Products and Services

Under the leadership of CEO Seamus Rocca, Xapo has developed a business model focused on retail business, unlike many Swiss competitors that serve institutional clients. New customers have to pay an admission fee of $1,000, which helps select customers. The company offers products such as accounts, payment cards, savings accounts, loans and access to investment products in both fiat and cryptocurrencies. The customer portfolio spans regions such as Latin America, the United Kingdom, Europe, South Africa and Asia.

• Xapo verwaltet etwa 900.000 Bitcoin, was zu einem Gesamtwert von fast 90 Milliarden Franken führt.
• Das Unternehmen hat im Jahr 2023 die Gewinnzone erreicht und plant, diese Stabilität aufrechtzuerhalten.

Customers also have the option of maintaining a dollar account and storing their Bitcoins securely in the Xapo vault. Soon, Xapo plans to enable the purchase of stock indices such as the S&P 500 with Bitcoin, which would further diversify the offering.

Security architecture and challenges

A key feature of Xapo's security strategy is cold storage vaults, including a former army bunker in the Gotthard massif. This underlines the company's commitment to the security of its customers' digitized assets, such as finews.com highlights. Xapo also combines traditional security architecture with modern fintech technology.

Rocca is optimistic about the current market sentiment but warns of possible cyclical declines. At the same time, the company is monitoring regulatory developments at the global level and is evaluating a potential re-entry into the US market should the regulatory environment improve.

The combination of innovative banking services and high security architecture positions Xapo as a significant player in the crypto banking space, responding to both the needs of retail customers and the challenges of the market.