Following the integration of USD Coin (USDC), Gibraltar's Xapo Bank becomes the first-ever fintech in the world to employ U.S. Dollar Tether (USDT) infrastructure for moving U.S. dollars between its accounts. The integration is compatible with MiCA requirements, the team highlights.
Xapo Bank pioneered using Tether (USDT) for USD accounts
According to the official announcement shared by the team of Xapo Bank, it starts using USDT for the transfers of its USD accounts. This statement was shared by VanEck's Gabor Gurbacs, who is also an advisor in Tether Limited.
GIBRALTAR-BASED BANK XAPO LAUNCHES USD ACCOUNTS ON TETHER RAILS INSTEAD OF SWIFT— Gabor Gurbacs (@gaborgurbacs) June 5, 2023
We are going to see more of this. Tether improves on the banking system.https://t.co/oqRgZ7ERQc
As such, Xapo Bank becomes the first regulated banking entity to replace the SWIFT system of information sharing by "stablecoin rails" for faster, transparent and more resource-efficient operations.
Seamus Rocca, CEO of Xapo Bank, stresses the importance of this integration for the entire banking segment in Europe and other regions:
Xapo Bank is the only regulated bank in the world which offers a USD account with stablecoin rails. This is a unique offering that combines the compliance and safety of a traditional bank, with the speed, efficiency and breadth of use of USDT. By growing our payment rail options, we are committed to eliminating the timely and often expensive deposit and withdrawal processes into regular banks. We are empowering our members to grow their wealth and access and spend it in a seamless manner.
Earlier, Xapo Bank integrated USD Coin (USDC) by Tether's main rival Circle Inc. in the same manner. The conversion rates between USD and both stablecoins is set at 1:1.
USDT prints new market cap record over $83.6 billion
As such, users of Xapo Bank can even use stablecoin infrastructure to receive yield on their holdings.
Representatives of Xapo Bank also highlighted that the integration is fully compliant with the MiCA framework, a new EU regulation on digital assets.
As covered by U.Today previously, Tether (USDT) recently set a new record for the net market capitalization of its stablecoin.
Its circulating supply now exceeds $83.6 million across various blockchain platforms.