Xapo Bank Offers $1M Bitcoin-Backed USD Loans
Xapo Bank launches Bitcoin-backed USD loans of up to $1M, offering long-term holders a new way to access cash without selling BTC.
- Xapo Bank now offers Bitcoin-backed loans up to $1 million.
- Loans allow holders to access cash without selling BTC.
- Ideal for long-term holders wanting liquidity and upside exposure.
Xapo Bank has introduced an innovative loan service that allows users to borrow up to $1 million in U.S. dollars, using their Bitcoin holdings as collateral. This move caters to long-term Bitcoin investors, often called “hodlers,” who are reluctant to sell their BTC but still need liquidity for personal or business needs. The Bitcoin-backed USD loans are designed to provide financial flexibility while enabling holders to benefit from any future appreciation of their digital assets.
With this new service, Xapo Bank is targeting high-net-worth individuals and crypto-savvy investors who prefer to keep their Bitcoin but still wish to unlock its value. This solution helps users avoid capital gains taxes that would typically arise from selling BTC and protects them from losing exposure to potential price increases.
Secure, High-Value Loans for Crypto Users
Xapo Bank’s Bitcoin-backed USD loans are secured through robust custodial services, ensuring borrower assets remain safe. Loans are approved based on the amount of Bitcoin held, and the bank claims to offer competitive interest rates tailored to individual loan sizes and risk profiles. Borrowers can access loans starting from significant sums, scaling up to $1 million.
This launch comes at a time when traditional banks remain cautious about crypto exposure, positioning Xapo Bank as a forward-thinking player in the crypto-financial ecosystem. For long-term Bitcoin believers, this service represents a bridge between traditional finance and crypto wealth.
