Xapo Bank announced to crypto.news that it will become the first licensed retail bank to offer its customers the ability to buy, sell and hold Ethereum (ETH), Cardano (ADA) and Polygon (MATIC) cryptocurrencies.
The bank, which received its full banking license in Gibraltar in 2018, has previously only allowed customers to hold Bitcoin, stablecoins like USDC and Tether, and fiat currencies like U.S. dollars and British pounds.
By expanding into other major cryptocurrencies like ETH, ADA, and MATIC, Xapo is aiming to provide its users a “one-stop shop” for digital asset investing, per Xapo CEO Seamus Rocca.
Although Xapo is best known for providing Bitcoin custody services, we can’t ignore member demand, and therefore we are giving access to other prominent cryptocurrencies.Seamus Rocca, CEO of Xapo Bank
Xapo Bank stores its customers’ funds in segregated accounts and guarantees crypto deposits up to $100,000 through Gibraltar’s deposit insurance program. The bank says its multi-party computation (MPC) system, which shards encryption keys into fragments across multiple locations, provides institutional-grade security.
The move comes as cryptocurrencies have seen a dramatic appreciation this year, with Bitcoin rising from $16,550 at the beginning of the year to its current price of $37,500. Ethereum and other major altcoins have seen similar price increases.
Xapo is seemingly betting on growing long-term demand for digital assets. In addition to the new cryptocurrencies, the bank also allows customers to invest in U.S. stocks and hold stablecoins.