Xapo Bank, a global bank suitable for currencies in Gibraltar, is betting on the revival of encryption by launching US -backed US dollar loans.
XAPO customers can now access Bitcoin (BTCThe company said in a joint advertisement with Cointelegraph on March 18, that loans of one million dollars said the company in a joint advertisement with Cointelegraph on March 18.
New Lending product It is designed in the long run Bitcoin Hodles Those who want to reach criticism while keeping BTC, told the CEO of Xapo Bank Seamus Rocca CointeleGRAPH.
“Unlike traditional assets, Bitcoin is an ideal form of guarantees – they are boundless, liquid, and available around the clock throughout the week, and can be easily divided, making it uniquely suitable for lending.”
There is no warranty use
One of the main discrimination of the Bitcoin loan product in XAPO is that the bank does not reunite the loan by users, which means that its lending mechanism does not include the reuse of BTC assets by customers.
Instead, the Bitcoin guarantee is stored in XAPO BTC with an institutional Multiple factors account (MPC) custody.
Make the encryption lending platform.
The company said that eligible Xapo customers can choose payment schedules from 30, 90, 180 or 365 days, with no penalties for early payment.
Who is the qualification?
The new Bitcoin lending of Xapo will be available to pre -accredited members based on several criteria.
The main criteria for eligibility are the amount of Bitcoin and the biases period, as Xapo specifically targets the long -term BTC holders with a long -term investment strategy.
According to To the bank, the offer will be available to global investors in regions such as Europe and Asia, with the exception of the United States.
List of judicial states supported by Xapo Bank. Source: XAPO Bank
Xapo Bank is organizer By the Financial Services Committee Gibraltar under the Financial Services Law 2019. In 2024, the bank succeeded The passport of its bank license in the United KingdomGranting the Xapo Bank application full access to the country.
While Xapo lending is presented throughout the European Union, encryption lending is not covered by local regulations such as Markets in encryption buttons range.
Revival after many collapses
The launch of the new BTC loan from Xapo Bank comes a few years after the Crypto lending industry was exposed to a major crisis in 2022.
The crisis came in the middle Terra historical crash and Subsequent This led to the collapse of the main lending providers such as Celsius and Blockfi.
“The collapse of Celsius, Blockfi and other central lenders has greatly eroded confidence in the coding area,” Xapo Bank.
An example of the bitcoin lending process on the Xapo Bank app. Source: XAPO Bank
Roca said: “Today, borrowers are practicing greater caution, and giving priority to platforms with a busy record in Bitcoin Nursery and those that provide safe and transparent solutions – especially those that do not participate in rehabilitation.”
“At the same time, the demand for backed loans from Bitcoin increases, especially among individuals of high value and institutional investors looking for liquidity without selling bitcoin possessions.”
In addition to removal of Asset Rehypothce and MPC, Xapo provides risk management and proactive protection to prevent automatic liquidation.
Related to: Bitwise makes the first institutional designation
“In the event of a decrease in Bitcoin, customers receive immediate notifications, allowing them to either increase their guarantees or make partial payment to maintain their loan condition,” Roca pointed out.
XAPO is not the only company to provide lending products in 2025. In early March, Bitcoin developer Blockstream got billions of dollars in investment To launch three new institutional boxes, with two of them introduce BTC lending.
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