The post Gibraltar-Based Bank Launches Bitcoin Collateral Loans appeared on BitcoinEthereumNews.com.

A potential return to crypto-backed lending products could be on the cards as Gibraltar-based Xapo Bank launches new options. The lending option will target long-term Bitcoin holders who might need access to cash but don’t want to sell their digital assets. Many crypto holders choose to sit on their investments by holding them in secure Bitcoin wallets. While the best crypto wallets will facilitate easy access and use, there are still many consumers who see crypto as an investment opportunity and choose to sit on it rather than use it as an active digital currency. How the Loans Will Work Xapo Bank now offers US Dollar loans of up to £1 million to customers and their product differs from previous crypto-backed loan products. They offer no collateral re-usage on BTC assets and store the collateral in their purpose-built crypto-vault which uses MPC (multiparty computation custody. The product offers flexible terms with repayment schedules available from just 30 days, up to 90, 180, and 365 days. Customers will also benefit from there being no penalties attached to early repayments. Eligibility As with any financial product, eligibility factors will come into who can apply for these loans. Consumers will be pre-approved for the loans based on eligibility criteria established by XapoBank. The most significant factor that will affect eligibility is how much Bitcoin holdings the consumer has and how long they have held it for. Long-term holdings will be preferred, with the product being made available to global investors, excluding the United States. Could this Signal a Return to Crypto Lending This is not the first time crypto lending products have been offered to consumers, but it has taken 3 years for the industry to recover from the bear market in 2022 which led to the collapse of lenders including BlockFi and…

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Filed under: News - @ March 23, 2025 7:17 am