- Xapo Bank has integrated USDC deposits and withdrawals
- The move means that the stablecoins can offer a fast and cheap alternative to SWIFT
- USDC has already been onboarded by Mastercard and Visa
Xapo Bank, the Gibraltar-based crypto bank that earlier this month integrated the Lightning Network, has now become the fully licensed bank to enable USDC deposits and withdrawals. The bank has collaborated with Circle to integrate USDC payment rails as an alternative to SWIFT, right at a time when traditional banks are shutting off routers to and from crypto exchanges. When combined with the USDC integration being worked on by both Visa and Mastercard, there appears to be a ray of light for crypto adoption at a time of gathering gloom.
Xapo Bypassing Lengthy SWIFT Payments
Xapo Bank announced the news of its USDC integration yesterday, saying that the ability to withdraw USDC enables members to “bypass costly and time consuming SWIFT payments” and instead deposit and withdraw via the stablecoin, with Xapo Bank charging no fees. All USDC deposits are automatically converted to USD, meaning that customers will have no concerns over the depegging that, as we have seen, can occasionally occur, even with stablecoins.
In a press release announcing the news, Xapo Bank CEO Seamus Rocca talked up the adoption of USDC:
Xapo Bank’s USDC payment rails mark a watershed moment in financial history, combining the speed and cost efficiency of the digital dollar, with the security guarantees of a licensed private bank. Enabling auto converted USDC deposits and withdrawals at Xapo Bank gives crypto members a safe haven for their savings.
USDC-centric Ecosystem Evolving
While small scale users might not see much of an advantage to withdrawing and depositing with USDC over SWIFT, those moving large amounts of money certainly will, especially when it comes to the processing time, with SWIFT payments taking anywhere up to four days and large transfers sometimes commanding high fees. Transferring the same with USDC will take minutes (or seconds, depending on the blockchain being used), with payments potentially in the pennies.
With Visa and Mastercard both working on USDC adoption on their platforms and XAPO bank now allowing USDC withdrawals, it seems that an ecosystem is quietly emerging, despite the best efforts of certain governments to prevent it.