In an effort that aims to integrate traditional banking with blockchain tech, Xapo Bank has partnered with BVNK to enable stablecoin deposits for its global customer base.
This collaboration marks a pivotal moment in the evolution of digital finance, offering access to stablecoin payments and reinforcing the growing role of stablecoins in global financial systems.
By leveraging BVNK’s enterprise-grade infrastructure, Xapo Bank is enabling its users to deposit and manage stablecoins like USDC and USDT, streamlining cross-border transactions and enhancing financial flexibility.
Xapo Bank, a Gibraltar-based institution known for its Bitcoin-enabled private banking services, has been a key player in bridging traditional finance with digital assets.
Since introducing support for USDC in March 2023 and USDT shortly thereafter, the bank has seen significant traction, with $48 million in USDC deposits and $4.5 million in withdrawals recorded by May 2023.
The latest partnership with BVNK builds on this momentum, allowing Xapo’s customers to fund accounts with major stablecoins, which are automatically converted to USD for seamless integration into traditional banking systems.
This move addresses the increasing demand for efficient, low-cost, and rapid payment solutions, particularly in emerging markets where access to stable currencies like the US dollar is often limited.
BVNK, a stablecoin payments platform, brings its infrastructure to the partnership, unifying blockchain and fiat payment rails.
With over $15 billion in annualized payment volumes and a network of global banking partners, BVNK enables businesses to move money across borders in minutes, bypassing the delays and high fees associated with traditional correspondent banking.
The company’s Layer1 platform, a self-custody digital asset infrastructure, simplifies the complexities of blockchain payments, allowing Xapo Bank to offer stablecoin deposits without requiring customers to hold or manage cryptocurrencies directly.
This “stablecoin sandwich” approach—where fiat is converted to stablecoins for transfer and back to fiat upon receipt—reduces settlement times from days to minutes, enhancing liquidity and operational efficiency.
The partnership is particularly impactful for Xapo’s diverse, global membership, many of whom are based in regions with volatile local currencies or limited banking access.
According to Xapo’s Q2 2025 Digital Wealth Report, stablecoin inflows have surged, with a 40% increase in the Middle East, 25% in Africa, and 12% in the Asia Pacific.
Stablecoins, pegged to assets like the US dollar, provide a stable store of value and a reliable medium for cross-border payments, addressing challenges such as high foreign exchange fees and slow settlement times.
For instance, BVNK’s infrastructure enables Xapo customers to deposit stablecoins, which are instantly converted to USD, allowing for 24/7/365 access to funds without the friction of traditional banking cut-off times.
This collaboration reflects broader trends in the financial sector, where stablecoins are gaining traction as a transformative payment rail.
With a global transaction volume of $27 trillion across 1.25 billion transactions in 2024, stablecoins are reshaping how businesses and consumers move value.
Key players like Visa, which invested in BVNK in May 2025, and Worldpay, which partnered with BVNK for stablecoin payouts, underscore the growing institutional adoption of stablecoin technology.
Regulatory frameworks like the EU’s MiCA and the US GENIUS Act are further paving the way for mainstream integration, providing clarity and trust for enterprises entering the space.
For Xapo Bank, this partnership aims to enhances its position as a key player in digital wealth management, catering to a growing demographic of tech-savvy Millennials and Gen Z investors who are increasingly engaging with digital assets.
By combining BVNK’s compliance-first approach—bolstered by 26+ licenses and ISO 27001 certification—with Xapo’s Bitcoin-backed lending and private banking expertise, the collaboration potentially unlocks new possibilities for financial inclusion.
As stablecoins continue to enhance digital finance, Xapo Bank and BVNK are hoping to be at the forefront, ideally delivering a faster, more accessible, and cost-effective way to move money worldwide.