Xapo Bank Enables Stablecoin Deposits Via Digital Assets Payments Platform BVNK

Full-reserve bank Xapo Bank has launched stablecoin deposits for its members, using digital assets payments platform BVNK to enable receipt of stablecoins globally. Xapo Bank said deposited stablecoins are settled in USD into members’ full-reserve accounts, which continue to earn Bitcoin-denominated interest.

The companies said the launch is intended to provide a faster, lower-cost route to fund USD accounts, addressing use cases where access to dollars can be slow or expensive, particularly for freelancers and businesses in regions such as Latin America and Asia.

Djoeri Timissen, Chief Product Officer At Xapo Bank, said customer demand has been shifting towards stablecoin rails:

 Customer behaviour is driving this shift. In February, over 41% of our USD inflows came through stablecoins. This isn’t an experiment, it’s an upgrade to how global users move money. Until now, using stablecoins with a bank account required clunky integrations or expensive and slow networks. This launch solves that problem.

 — Djoeri Timissen, Chief Product Officer, Xapo Bank

The firms said the integration is embedded in the Xapo app and is intended to provide near-instant settlement from stablecoin deposit to USD balance. The user journey emphasised by the companies is: deposit stablecoins (via BVNK), see USD funds available shortly after (via Xapo), and continue to earn Bitcoin interest on USD holdings.

Simon Griffin, Chief Product Officer At BVNK, said the challenge has been linking token transfers to regulated banking systems:

 The challenge isn’t moving tokens, it’s integrating them into regulated systems without complexity. That’s what this launch gets right. Xapo is a preview of where financial services are headed, licensed banks running on programmable infrastructure, with stablecoins moving value in real-time behind the scenes.

 — Simon Griffin, Chief Product Officer, BVNK

The partners indicated future developments could include stablecoin withdrawals, support for additional networks and assets, and expanded use cases such as cross-border payments, FX, and treasury management.

Risk note (editorial): Risk rating: Medium. Use of stablecoins within banking workflows introduces regulatory, counterparty, and operational risks; settlement times and availability may vary by network and jurisdiction.