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Xapo Bank Reopens USDC Deposits Amid The Remaining Crisis

Key Points:

Xapo bank now continues to accept payments in British Pounds and USDC stablecoins.
Asked about the future of USDT, the bank said it would consider the stablecoin.
Previously, the bank allowed Bitcoin payments on the Lightning Network.

Crypto-friendly Xapo bank has allowed GBP and USDC stablecoin payments for its customers after earlier suspending services for the two currencies due to the continuing financial crisis.

Last Saturday, in the context of the whole market panicking due to the collapse of Silicon Valley Bank, the leading US bank, banks in general and Xapo in particular limited their exposure to it.

Circle, the issuer of USDC, has stated that its funds are in SVB up to $3.3 billion. This was the move that led to the USDC sell-off and caused the 2nd largest stablecoin to lose pegs since it entered the market.

Given the general situation, it is not surprising that Xapo has temporarily stopped depositing USDC in banks. At the same time, the bank asserts has no direct exposure to SVB.

However, the bank is reassured that their assets are still safe and funds will be reopened soon.

Until yesterday, when the market landscape remained risky for USDC, it had returned to its $1 peg. Xapo has reopened services for both GBP. The special thing is that USDT is the most stable stablecoin in recent times, but it is not included in the recent deposit and withdrawal system. One user asked about the future of USDT, to which the bank replied:

Earlier, Xapo bank collaborated with Lightspark and incorporated the Bitcoin-based Lightning Network, adding another string to the bow of Xapo’s Gibraltar-licensed private bank and cryptocurrency custodian.

The bank becomes the first fully licensed private bank to offer near-instant Bitcoin payments, and its goal is to be the largest Lightning node, and expand the network usage of many new users.

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.