Bitcoin
Bitcoin (BTC)
$81,652.00 -1.8615
Bitcoin price
Ethereum
Ethereum (ETH)
$1,880.34 -1.49482
Ethereum price
BNB
BNB (BNB)
$631.36 0.98486
BNB price
Solana
Solana (SOL)
$123.36 -3.01297
Solana price
XRP
XRP (XRP)
$2.24 -4.01668
XRP price
Shiba Inu
Shiba Inu (SHIB)
$0.0000123 -4.61235
Shiba Inu price
Pepe
Pepe (PEPE)
$0.0000068 -4.5248
Pepe price
Bonk
Bonk (BONK)
$0.0000103 -5.24384
Bonk price
dogwifhat
dogwifhat (WIF)
$0.454012 -5.58516
dogwifhat price
Popcat
Popcat (POPCAT)
$0.182626 -8.0732
Popcat price
Bitcoin
Bitcoin (BTC)
$81,652.00 -1.8615
Bitcoin price
Ethereum
Ethereum (ETH)
$1,880.34 -1.49482
Ethereum price
BNB
BNB (BNB)
$631.36 0.98486
BNB price
Solana
Solana (SOL)
$123.36 -3.01297
Solana price
XRP
XRP (XRP)
$2.24 -4.01668
XRP price
Shiba Inu
Shiba Inu (SHIB)
$0.0000123 -4.61235
Shiba Inu price
Pepe
Pepe (PEPE)
$0.0000068 -4.5248
Pepe price
Bonk
Bonk (BONK)
$0.0000103 -5.24384
Bonk price
dogwifhat
dogwifhat (WIF)
$0.454012 -5.58516
dogwifhat price
Popcat
Popcat (POPCAT)
$0.182626 -8.0732
Popcat price
Bitcoin
Bitcoin (BTC)
$81,652.00 -1.8615
Bitcoin price
Ethereum
Ethereum (ETH)
$1,880.34 -1.49482
Ethereum price
BNB
BNB (BNB)
$631.36 0.98486
BNB price
Solana
Solana (SOL)
$123.36 -3.01297
Solana price
XRP
XRP (XRP)
$2.24 -4.01668
XRP price
Shiba Inu
Shiba Inu (SHIB)
$0.0000123 -4.61235
Shiba Inu price
Pepe
Pepe (PEPE)
$0.0000068 -4.5248
Pepe price
Bonk
Bonk (BONK)
$0.0000103 -5.24384
Bonk price
dogwifhat
dogwifhat (WIF)
$0.454012 -5.58516
dogwifhat price
Popcat
Popcat (POPCAT)
$0.182626 -8.0732
Popcat price
Bitcoin
Bitcoin (BTC)
$81,652.00 -1.8615
Bitcoin price
Ethereum
Ethereum (ETH)
$1,880.34 -1.49482
Ethereum price
BNB
BNB (BNB)
$631.36 0.98486
BNB price
Solana
Solana (SOL)
$123.36 -3.01297
Solana price
XRP
XRP (XRP)
$2.24 -4.01668
XRP price
Shiba Inu
Shiba Inu (SHIB)
$0.0000123 -4.61235
Shiba Inu price
Pepe
Pepe (PEPE)
$0.0000068 -4.5248
Pepe price
Bonk
Bonk (BONK)
$0.0000103 -5.24384
Bonk price
dogwifhat
dogwifhat (WIF)
$0.454012 -5.58516
dogwifhat price
Popcat
Popcat (POPCAT)
$0.182626 -8.0732
Popcat price

Xapo Bank opens $1m Bitcoin-backed credit line

Jayson Derrick
Edited by
News
Xapo Bank opens $1m Bitcoin-backed credit line

Crypto wealth manager Xapo Banks is offering U.S. dollar loans backed by Bitcoin to expand liquidity options for customers.

Gibraltar-based Xapo Bank has introduced Bitcoin-backed (BTC) USD loans to discourage BTC selling and provide flexible liquidity pathways for its eligible customers.

Xapo Bank users can access up to $1 million in credit by offering their Bitcoin as collateral. Clients will have up to a year to repay the loan, depending on the loan size, and can receive as much as 40% of their BTC’s value in U.S. dollars.

According to the company, which primarily focuses on BTC custody, customers often liquidate crypto holdings first during market uncertainty. This pattern adds to existing sell pressure and ultimately hampers the largest cryptocurrency by market cap.

Offering BTC-backed U.S. dollar loans aims to encourage long-term BTC holding while providing quick liquidity when needed.

Lessons from past failures

In 2022, crypto-native lenders like BlockFi and Celsius promised similar products. However, both companies ultimately failed to deliver and were later found to have falsified financial records to stay afloat. Their collapse contributed to a prolonged bear market, shaking confidence in crypto lenders.

Yet, while firms like BlockFi and Celsius were regulated entities, Xapo operates as a fully licensed bank with a similar structure to traditional institutions. As such, the stark difference may produce different results in Xapo’s case.

In other news, Xapo Bank teamed up with trading firm Hilbert Group in August 2024 to launch a $200 million Bitcoin fund. In 2023, Xapo Bank also expanded its crypto suite, allowing clients to buy tokens like Ethereum (ETH) and Cardadon (ADA).