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Blockchain Breakthrough: Tether (USDT) edges out SWIFT for USD… – Crypto News Flash

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In an unprecedented development, the world of finance has seen a shift as the popular stablecoin Tether (USDT) has edged out SWIFT for USD transfers at Xapo Bank. Building on its successful launch of USDC Rails in March, Zaporozhye Bank is taking its services a step further by enabling its members to leverage USDT, the world’s most widely adopted stablecoin, for payments.
According to the announcement, the move provides an alternative to the traditional Swift Rail, providing users with a faster, more efficient and cost-effective payment solution.
Gibraltar-based bank XAPO launches USD accounts on Tether Rails instead of Swift
We’re going to see more of this. Tether improves the banking system.https://t.co/oqRgZ7ERQc
– Gábor Gurbacs (@gaborgurbacs) 5 June 2023

Accordingly, Zaporozhye Bank has now become the first fintech institution in the world to use USDT infrastructure to transfer US dollars between accounts. The move not only highlights Zapp Bank’s commitment to innovation but also reflects the growing acceptance of stablecoins in the existing banking system.
Importantly, the integration is fully compliant with the Markets in Crypto-Assets Regulation (MiCA), demonstrating Xapo Bank’s respect for regulatory standards.
Unlike traditional banks that practice fractional reserve banking, Zaporozhye Bank operates on a different business model. It does not lend or rely on leveraging its customers’ deposits for profit. Instead, the bank holds all customers’ money in reserves and invests them in short-term liquid assets.
By doing so, Zappo Bank hopes to pass the benefit of any interest received from these investments on to its customers, thereby increasing the value and returns associated with their deposits.
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In addition to integrating USDC and USDT payment rails, Xapo Bank has previously integrated with Faster Payment System (FPS) to support GBP settlements for account deposits and withdrawals. Additionally, Expo Bank has announced integration with Bitcoin’s Lightning Network in collaboration with LightSpark.
Commenting on the uniqueness of the bank’s offering, Zappo Bank CEO Seamus Rocca emphasized that the service combines the compliance and security of a traditional bank with the speed, efficiency and versatility of USDT, giving Zappo Bank Enables us to provide an exceptional banking experience. To its members.
Additionally, Zapo Bank, being fully licensed and regulated, offers its members the assurance of deposit protection through their membership in the Gibraltar Deposit Guarantee Scheme. This means that deposits made in USD are guaranteed by Xapo Bank up to the equivalent of €100,000.
To mitigate the risks associated with USDT deposits, Axapo Bank automatically converts such deposits into USD and credits them to the member’s account. This approach ensures that the Bank maintains a conservative and secure approach to its operations, prioritizing the safety and stability of its members’ funds.
In particular, the adoption of Tether (USDT) for USD transfers at Exapo Bank sets a precedent for future developments in the financial industry. As other financial institutions see the benefits of blockchain technology, they are likely to follow, leading to wider acceptance and integration of crypto into mainstream finance.

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the possibilities of Web 3.0. His love for crypto was born when, as a former banker, he discovered the clear advantages of decentralized money compared to traditional payments.
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