XAPO: Bringing Bitcoin to Everyday Life Team 13 Zen Dedekind, Brinda Panchal, Pragnya Paramita, Vedant Tomer We will review, What is Xapo? What is their business model? What are some strengths and challenges associated with the business and how Xapo mitigates these risks Finally, what is our verdict about the business

Xapo Value Proposition Customers are hesitant to use bitcoin due to perceived lack of convenience and security. Xapo addresses these concerns through its suite of products. WALLET VAULT XAPO Convenience Security Xapo was founded in 2014 by Wences Casares. Known as fort Knox of bitcoin, Xapo, provides a Bitcoin wallet combined with a cold storage vault, allowing for transfers. The vault is a series of physical servers that have biometric access, security and is filmed around the clock. While Wences has been working on storing bitcoin securely for both family and friends since 2011, Xapo came into existence post the Mt Gox and wanted to address two main concerns that consumers have with bitcoin currency – Convenience and Security. For consumer convenience, Xapo users have a wallet and debit card to store and withdraw bitcoins across the globe. Xapo Wallet has no fees, no delays, and no geographic limitations.  For security, in addition to fully insuring all the bitcoins in the wallet and debit card, Xapo provides deep cold storage, a security architecture in which users’ private keys are never exposed to the internet. The primary cold storage is Switzerland, with additional sites across the globe. Now Brinda will go over the Business model for the firm DEBIT CARD INSURANCE

Xapo Business Model Xapo makes money from Bitcoin purchases and Vault software for enterprises. Wallet Worldwide Peer to Peer Transfer: FREE $100 Buy Bitcoin Conversion Fee: 1% Processing: Varies $50 Debit Card Card Issuance: $20 Annual Fee: $12 Transaction: FREE $32 ATMs Withdrawal: $2.5 3 Currencies with ATM $2.5 + $60 Vault Software Costs for Enterprises Storage: FREE $4,000 A customer decides to buy $5000 worth of Bitcoins. Xapo charges1% conversion fee – this is almost the sole source of income for Xapo. Then he can decided to put $4000 in the highly secure Vault – just like putting money in Savings Account at no cost and keeps the rest in his wallet. Now he transfers $100 to a friends in Italy at no cost. Now if he wants to shop, he can issue a Visa Debit card using the wallet. The card issuance fee is $20 and Annual Fee $12 – however the first year is free. If you are traveling and need to withdraw cash in 80 countries across the world – you can with $2.5 FLAT fee. Thus, of the $5000 Bitcoins, Xapo makes $50, Visa makes 34.5. The customer on the other hand.. Only spends 34.5 max on any transaction whatsoever. A customer buys $5000 worth of Bitcoins. He decided to spend $160 and leave the rest as savings. $50 $4,755.5 $160 $34.5

Xapo: Business Strengths, Opportunities and Challenges  Bench Strength  Reactionary Regulation   Regulatory Status Bitcoin Centralization   VC Funding Bad Actors Opportunities  Lawsuits  Merchant Partnerships  Emerging Markets

Xapo: Ready for success Xapo has build a foundation they can leverage to penetrate the position that more traditional financial institutions currently hold. Ease of use Security Scale Regulatory status

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