Crypto-friendly bank Xapo has recently obtained a MiFID license, paving the way for the firm to offer S&P 500 stock trading and expand its cryptocurrency services to European clientele. The Gibraltar-based bank, led by CEO Seamus Rocca, was initially focused on institutional crypto adoption but has since shifted its attention towards retail investment.
The company's origins lie in Bitcoin wallet provision, cold-storage custody vault operation, and a cache of 30,000 Bitcoin. Xapo targets an older demographic interested in diversified portfolios and long-term investment strategies. The bank's growth can be attributed to its licensing agreements and partnerships with Visa (NYSE:V), Mastercard (NYSE:MA), and SWIFT. The latter is a global messaging system for financial institutions that provides access to money market accounts.
Xapo has also gained momentum from its business decisions such as selling its enterprise custody business to Coinbase (NASDAQ:COIN). This move marked a significant shift in the company's focus from institutional crypto adoption.
In line with Bitcoin's ethos of 'financial freedom for all' and the rising trend of non-custodial wallets, Xapo is set to introduce Ethereum trading. This new offering will fall under Europe's Markets in Crypto Assets (MiCA) regime. The expansion of Xapo's services underlines the firm's commitment to providing diverse investment options to its customers.
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