Xapo Bank Launches Bitcoin-Backed Loans for Long-Term Holders
TL;DR
Xapo Bank has launched a Bitcoin-backed loan service, allowing customers to access up to one million dollars in BTC as collateral.
The offer is limited to certain regions, excluding the UK and Australia, and aims to expand the range of products available to international clients.
Xapo focuses on providing secure and reliable financial services, in contrast to predatory practices seen on other platforms.
Xapo Bank has launched a new service that allows its customers to access Bitcoin-backed loans. This product allows customers to obtain loans of up to one million dollars, as long as they provide BTC as collateral.
The offer has limitations, as it is not available in the UK and Australia. According to Gadi Chait, Xapo’s investment manager, Bitcoin is an ideal asset for this type of service due to its stability and demand over the years.
The Return of Crypto Loans
The Gibraltar-based bank has a long history of handling Bitcoin, as it has been safeguarding BTC on behalf of its clients since 2013. With this new service, Xapo seeks to expand its offerings and provide more options to users in various regions. Chait emphasized that the institution aims to become a one-stop solution for customers, similar to other major financial sector firms.
In addition to offering Bitcoin-backed loans, Xapo is exploring other tools. The entity has requested regulatory approval to launch additional investment services.
Xapo is Recognized for its Good Practices
The return of crypto-backed loans is a growing trend in the industry, especially in the United States. After a pause in 2023, platforms like Coinbase have resumed such operations, using decentralized protocols like Morpho. Companies like Bitwise are also leveraging decentralized finance (DeFi) to earn yields from Bitcoin-backed loans.
Xapo is recognized for being more cautious compared to other companies that have been criticized for predatory practices. After the collapse of FTX, many investors have steered away from crypto-backed loans due to the unreliability of some products. This bank’s proposal aims to provide a safer, more reliable alternative tailored to customers’ needs.
Filed under: News - @ March 18, 2025 4:22 pm