Gibraltar-based crypto-focused bank Xapo has received a Markets in Financial Instruments Directive (MiFID) licence. Accordingly, it paved the way for the expansion of its services throughout Europe. This new development allows Xapo to offer its European clients access to a wide range of investment options, including S&P 500 stocks such as Apple, in addition to its existing crypto asset management services.
Focus on crypto-focused long-term investment
Xapo’s strategy evolves from its previous strategy focused solely on Bitcoin and cryptocurrency. It also responds to the growing demand for a more diversified investment portfolio. Accordingly, it is preparing to integrate Ethereum (ETH) into its platform.
Xapo CEO Seamus Rocca emphasized that the bank’s target customer base is not the typical speculative trader. Instead, they aim to serve an older demographic looking for safe, long-term investment options. These customers are more likely to have purchased Bitcoin as a form of wealth preservation or for long-term growth, similar to a retirement fund. “They want a diversified portfolio, maybe with some stocks, an interest-earning savings account and a bitcoin allocation,” Rocca said.
Xapo’s unique journey
Xapo’s journey in the cryptocurrency space began in 2013 with a wallet and a reserve of 30,000 Bitcoin (BTC). The company later moved to Gibraltar. It also operated under the crypto asset service provider (VASP) framework. This move allowed Xapo to focus on retail customers and the philosophy of financial freedom associated with Bitcoin.
The company has steadily expanded its services. Accordingly, he recently obtained a banking license. It also obtained primary membership with Visa and Mastercard. It also gained access to SWIFT, the global banking system for interbank transfers. This direct connection with correspondent banks is noteworthy. It also distinguishes Xapo from traditional payment companies or third-party intermediaries.
Moving away from traditional banking
Some banks are gradually adopting cryptocurrencies for corporate services. On the other hand, Xapo stays away from this trend. They chose to focus on individual customers and the original philosophy of cryptocurrency for financial empowerment.
Seamus Rocca said the following about this approach: “This is where I think we are breaking the mold. We could see the need to build a bank that bridges crypto and everyday use cases. Because traditional banks wouldn’t do it.” says. When we look at it as Kriptokoin.com, Xapo’s unique strategy attracts attention. A testament to its commitment to providing accessible and practical crypto-based solutions to everyday consumers.
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