Xapo Bank, the fully licensed banking organisation combining traditional banking with access to Bitcoin and stablecoins, has launched a new stock investment feature within the ‘Wealth’ section of its mobile application. It looks to expand accessible investment options for its non-US members by enabling them to invest in S&P 100 stocks from anywhere in the world.
Non-US Xapo Bank members can now make fractional or whole investments in over 100 blue chip stocks with as little as $10 and automatically collect dividends with stocks that offer these benefits. There are no hidden fees, and all transactions will incur a simple one per cent fee, with regulatory fees where applicable. In the near future, a host of additional stocks and investment options may also be added.
Xapo Bank is also partnering with DriveWealth, a member of the Securities Investor Protection Corporation, to roll out the ‘stocks’ feature with an added security layer. Under the partnership, Xapo Bank members’ securities held with DriveWealth through its Wealth offering are protected up to $500,000.
Xapo Bank offers members a competitive annual interest rate of 4.1 per cent on USD deposits, as well as one per cent on Bitcoin deposits.
In the face of inflationary pressures and macroeconomic headwinds in the aforementioned markets, Xapo Bank provides members with the tools to not only safeguard and access their deposits 24/7 but also grow their wealth at the same time. This is done via interest-bearing offshore accounts denominated in USD, the most commonly held reserve currency and the most widely used currency for international trade and other transactions around the world.
The addition of the stock investment feature builds on the Xapo Bank yield-bearing savings account by providing members access to investment services to further grow their wealth.
Xapo Bank driving financial inclusion
Seamus Rocca, CEO of Xapo Bank, discussed the launch: “At Xapo Bank, we always encourage portfolio diversification and sensible investing. Medium to long-term investing in S&P 100 stocks is a well-recognised way of achieving long-term wealth so we wanted to make it accessible to everybody.
“By opening up access to the US stock market for our international members, we are providing them with the best tools available to grow their wealth and ultimately democratising access to a highly desirable market.
“In one application, you can now hold Bitcoin, a high-interest USD savings account and your stock investments, all without being limited by where you live.”
In addition to its traditional wealth features, Xapo Bank also has its sights on further driving financial innovation. Earlier this year, it became the first fully licensed bank to enable USDC and USDT deposits and withdrawals, giving its members an alternative to SWIFT payments.
Xapo Bank has also integrated with the Faster Payments System to activate support for GBP settlement for account deposits and withdrawals, as well as announcing an integration with the single euro payments area (SEPA) network to allow members seamless movement of funds in Euros (EUR) and an integration with Bitcoin’s Lightning Network to enable lightning-fast Bitcoin payments for small transactions.