Transparency isn’t just a buzzword. It’s a cornerstone of our relationship with you. You deserve to understand how both your USD and Bitcoin savings generate earnings and what it means for your wealth. Let’s take a closer look at the journey of your savings and how we ensure they work for you.
Your money and Bitcoin remain yours. We don't lend it out
Traditional banks lend out deposits in a practice known as fractional reserve banking, keeping only a fraction of the money deposited with them as reserves. We take a different approach. Your USD and bitcoin aren’t lent out or tied up in risky long-term investments. This means you always have instant access to your funds, free from penalties or delays.
How Xapo Bank generates yield on your USD savings
Strategic investments for growth and agility
We carefully place your USD savings in highly liquid, short-term AAA-rated US Treasuries. This approach ensures your funds remain accessible while earning yield, giving you the best of both worlds: growth and peace of mind.
What are AAA-rated US treasuries
U.S. Treasuries are debt securities issued by the U.S. Department of the Treasury and are considered one of the safest investments globally. The AAA rating represents the highest level of creditworthiness, backed by the full faith and credit of the US government.
Why choose low-maturity treasuries?
We invest in treasuries set to mature soon to minimise exposure to yield rate fluctuations and keep your assets flexible. This means your savings are always secure and can be converted into cash quickly whenever you need them.
How Xapo Bank generates yield on your Bitcoin savings
A new way to generate Bitcoin yield
We see Bitcoin savings as a stepping stone toward offering even greater yield opportunities for our members. To bridge that gap, we pay yield from our own Bitcoin reserves while we explore new ways to bring a high-yield product directly to you. Our goal is to keep pushing the boundaries of what’s possible.
Responding to a changing market
In the face of an ever-evolving economic climate, we understand that the landscape for Bitcoin is continuously reshaping, introducing a blend of new challenges and opportunities for yield generation.
As a result, we remain agile and ready to adapt to the world around us. This means we will occasionally adjust our yield rates to reflect the current market conditions, with our focus always on looking ahead, anticipating changes, and strategising how to maximise the yield we generate for you responsibly.
How we share yield with you
While market conditions influence returns, our commitment to your financial growth remains the same. We ensure the bulk of earnings are passed on to you while a portion is reinvested into continuously upgrading and refining our services to provide an even better banking experience.
Instant access to your USD and Bitcoin savings
Whether you’re holding USD or Bitcoin, your funds remain liquid and accessible at any time. There are no lock-up periods and no hidden fees. Just the flexibility to use your savings whenever you need them.
Keeping you informed
yield rates fluctuate, and we believe you should always be the first to know. We keep you updated on any changes throughout the year so that you can make informed financial decisions with complete transparency.
In summary
We are at the forefront of bridging traditional banking with the innovative world of Bitcoin. By responsibly investing your USD in secure, liquid assets like AAA-rated US Treasuries and exploring new ways to generate bitcoin yield, we ensure that your savings not only grow but remain fully accessible whenever you need them. Your financial journey is personal, and we're committed to guiding you through it every step of the way.
*Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
