Xapo Bank offers a regulated Bitcoin custody solution purpose-built for long-term asset protection. Since 2013, they have engineered a multi-layered security architecture that combines physical vaults, advanced cryptographic controls, and strict operational protocols to safeguard digital assets against theft, loss, and hacking.
Security Architecture
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Military-Grade Physical Vaults: Bitcoin is stored in underground bunkers protected by armed guards and biometric security systems, including a nuclear-proof vault in the Swiss Alps.
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MPC-CMP Technology: Multi-Party Computation eliminates single points of failure by splitting private keys into geographically distributed shards, ensuring no single entity can ever access or move funds alone.
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Zero Trust Architecture: Strict internal controls enforce the Principle of Least Privilege, preventing unauthorized employee access to sensitive information.
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48-Hour Security Buffer: A mandatory withdrawal delay on vault transactions provides an extra layer of protection against unauthorized access.
Key Features
- Retain absolute control — vault withdrawals require your explicit action, and no one else can move your funds
- Advanced authentication controls with biometrics and hardware security keys
- In-app digital Bitcoin vault for easy asset management
- Designate a beneficiary for secure inheritance of digital assets
- Regulated by the Gibraltar Financial Services Commission (GFSC) as a licensed credit institution and DLT provider
- Dedicated relationship manager for personalized support
Pros
- Fully regulated by the Gibraltar Financial Services Commission as both a credit institution and a DLT provider, offering a legal framework that bridges Bitcoin custody with traditional banking.
- Uses military-grade security infrastructure including Multi-Party Computation (MPC), geographically distributed key shards, and vaults housed in a decommissioned ex-military bunker in the Swiss Alps.
- Supports legally structured Bitcoin inheritance planning through beneficiary designations, eliminating the need for heirs to manage seed phrases or private keys.
- Provides a global Visa/Mastercard debit card with up to 1% Bitcoin cashback on purchases and no foreign exchange fees on international spending.
- Fiat deposits are protected up to the equivalent of €100,000 under the Gibraltar Deposit Guarantee Scheme, and the platform undergoes regular audits by PwC and KPMG.
- Offers Bitcoin-backed loans up to $1 million with loan-to-value ratios up to 40%, enabling members to access liquidity without selling their BTC holdings.
Cons
- Not available to residents of the United States, limiting its accessibility to a large segment of potential users.
- Only supports Bitcoin as a cryptocurrency — no support for altcoins such as Ethereum, Solana, or other digital assets.
- Bitcoin deposits are not covered by the Gibraltar Deposit Guarantee Scheme, which only applies to eligible fiat deposits up to €100,000.
- ATM withdrawals above $100 per month incur an additional 2% fee, and the debit card is not supported in all countries.
- Uses a custodial model where Xapo controls the private keys, meaning members do not have direct self-custody over their Bitcoin.
- Bitcoin held in the BTC Vault does not earn interest, unlike BTC Savings balances which are designed for yield generation.