{"id":125311,"date":"2025-03-18T13:19:24","date_gmt":"2025-03-18T13:19:24","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125311"},"modified":"2025-03-18T13:19:24","modified_gmt":"2025-03-18T13:19:24","slug":"xapo-bank-launches-bitcoin-backed-usd-loans-targeting-hodlers","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125311","title":{"rendered":"Xapo Bank launches Bitcoin-backed USD loans targeting hodlers"},"content":{"rendered":"

Source: Cointelegraph.com NewsXapo Bank, a global cryptocurrency-friendly bank headquartered in Gibraltar, is betting on crypto lending revival by launching Bitcoin-backed US dollar loans.
\nQualifying Xapo Bank clients can now access Bitcoin (BTC) loans of up to $1 million, the firm said in an announcement shared with Cointelegraph on March 18.
\nThe new lending product is designed for long-term Bitcoin hodlers who want to access cash while keeping their BTC, Xapo Bank CEO Seamus Rocca told Cointelegraph.
\n\u201cUnlike traditional assets, Bitcoin is an ideal form of collateral \u2014 it is borderless, highly liquid, available 24\/7, and easily divisible, making it uniquely suited for lending,\u201d Rocca said.
\nNo collateral re-usage
\nA key distinction of Xapo\u2019s Bitcoin loan product is that the bank does not rehypothecate the loan collateral by users, meaning that its lending mechanism does not involve the re-usage of BTC assets by clients.
\nInstead, the Bitcoin collateral is stored in Xapo\u2019s BTC vault using institutional multiparty computation (MPC) custody.
\nWorking of a crypto lending platform.Eligible Xapo clients can choose repayment schedules of 30, 90, 180 or 365 days, with no penalties for early repayment, the firm said.
\nWho is eligible?
\nXapo\u2019s new Bitcoin lending offering will be available to pre-approved members based on several criteria.
\nThe key criteria for eligibility are the amount of Bitcoin holdings and the period of holdings, as Xapo specifically targets long-term BTC holders with a long-term investment strategy.
\nAccording to the bank, the offering will be available to global investors in regions like Europe and Asia, excluding residents of the United States.
\nThe list of jurisdictions supported by Xapo Bank. Source: Xapo BankXapo Bank is regulated by the Gibraltar Financial Services Commission under the Financial Services Act 2019. In 2024, the bank successfully passported its banking license in the United Kingdom, granting its Xapo Bank App full access to the country.
\nWhile Xapo\u2019s lending is offered across the European Union, crypto lending is not covered by local regulations like the Markets in Crypto-Assets framework.
\nA revival following numerous collapses
\nXapo Bank\u2019s new BTC loan launch comes a few years after the crypto lending industry suffered a major crisis in 2022.
\nThe crisis came amid the historic Terra crash and a subsequent bear market that triggered the collapses of major lending providers like Celsius and BlockFi.
\n\u201cThe collapse of Celsius, BlockFi, and other centralized lenders significantly eroded trust in the crypto lending space,\u201d Xapo Bank CEO told Cointelegraph.
\nAn example of the Bitcoin lending process on the Xapo Bank App. Source: Xapo Bank\u201cBorrowers today exercise greater caution, prioritizing platforms with a proven track record in Bitcoin custody and those that offer secure, transparent solutions \u2014 especially ones that do not engage in rehypothecation,\u201d Rocca said, adding:
\n\u201cAt the same time, demand for Bitcoin-backed loans is on the rise, particularly among high-net-worth individuals and institutional investors who seek liquidity without selling their Bitcoin holdings.\u201d
\nIn addition to removing asset rehypothecation and MPC security, Xapo offers risk management tools and proactive protection to prevent automatic liquidations.
\nRelated: Bitwise makes first institutional DeFi allocation
\n\u201cIn the event of a Bitcoin price drop, customers receive instant notifications, allowing them to either top up their collateral or make partial repayments to maintain their loan status,\u201d Rocca noted.
\nXapo is not the only firm that has been working to introduce lending products in 2025. In early March, Bitcoin developer Blockstream secured a multibillion-dollar investment to launch three new institutional funds, with two of them offering BTC lending.
\nMagazine: ETH may bottom at $1.6K, SEC delays multiple crypto ETFs, and more: Hodler\u2019s Digest, March 9 \u2013 15Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsXapo Bank, a global cryptocurrency-friendly bank headquartered in Gibraltar, is betting on crypto lending revival by launching Bitcoin-backed US dollar loans. Qualifying Xapo Bank clients can now access… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125311"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125311"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125311\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125311"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}