Xapo Bank has launched a new Bitcoin-backed credit line, offering eligible customers up to $1 million in U.S. dollar loans using their BTC as collateral. Borrowers can access up to 40 percent of their Bitcoin’s value and have up to a year to repay, depending on the loan size.
How Xapo Bank’s Bitcoin-Backed Loans Could Change Crypto Lending
The Gibraltar-based bank aims to reduce Bitcoin sell pressure by giving holders an alternative to liquidating their assets during market uncertainty. Unlike past crypto lenders like BlockFi and Celsius, which collapsed due to financial mismanagement, Xapo Bank operates as a fully licensed institution with a traditional banking structure.
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Xapo has been expanding its crypto services, teaming up with Hilbert Group in 2024 to launch a $200 million Bitcoin fund and introducing support for Ethereum and Cardano purchases in 2023. The bank’s latest move reinforces its position as a major player in crypto wealth management.
