Circle Partners with Xapo Bank to Bypass SWIFT

Xapo Bank, a licensed private bank and Bitcoin custodian, has partnered with financial technology company Circle to introduce USD Coin (USDC) payment rails as an alternative to SWIFT.

These payment rails are a type of infrastructure and technology used to transfer funds between parties in a financial transaction, and they can take the form of bank wires, credit card networks, and blockchain-based systems.

The new feature allows members to avoid the costly SWIFT payment system by using USDC on-ramps, with no fees and a one-to-one conversion ratio from USDC to the dollar.

Plus, all USDC deposits are converted automatically to the dollar, giving members a possible annual interest rate of 4.1%.

Xapo Bank is also a part of the Gibraltar Deposit Guarantee Scheme (GDGS), which safeguards dollar deposits up to $100,000.