Xapo Bank Introduces Bitcoin Secured Loans: Crypto-Based Lending in the Global Market

Jakarta, Pintu News – Xapo Bank, a Gibraltar-based financial institution, is now offering a loan service backed by Bitcoin (BTC). With this service, Xapo Bank members can use their Bitcoin as collateral to access loans of up to $1 million or around Rp16.3 billion. However, this service is not available to customers in the UK and Australia.

This initiative allows Bitcoin holders to retain their assets as long-term financial instruments while gaining liquidity without having to sell them. In addition, Xapo Bank brings a range of security features to protect users’ investments and ensure a transparent and secure lending process.

Development of Crypto-Based Lending in the Global Market

With the growing acceptance of cryptocurrencies in the global financial sector, major Wall Street firms such as Cantor Fitzgerald are starting to build their own Bitcoin financing businesses. This move is also supported by collaborations with companies like Anchorage Digital and Copper.co in expanding Bitcoin-based lending services around the world.

During the pandemic cryptocurrency boom, Xapo became one of the first banks to establish a physical headquarters in Europe. After gaining regulatory approval in the UK last year, Xapo began offering Bitcoin interest account services as well as a range of other banking services to customers.

Also Read: Bitcoin Miner Sales Still High, On-Chain Data Reveals Bearish Trend (3/19/25)

Bitcoin Lending Mechanics and Security at Xapo Bank

As a centralized financial institution, Xapo Bank implements an approval system before customers can obtain loans. Bitcoin pledged as collateral will be kept in a secure storage system or “vault” until the loan is repaid. The repayment period can be up to one year, giving borrowers the flexibility to manage their finances.

Seamus Rocca, CEO of Xapo Bank, emphasized that many long-term Bitcoin holders are reluctant to use their assets as collateral due to the non-transparent risks of crypto lending. Therefore, Xapo is working to implement a more secure and reliable lending system that allows customers to access funds without losing ownership of their assets.

Similar Services in the Cryptocurrency Industry

Xapo is not the only institution offering Bitcoin-based loans. Previously, Coinbase had introduced a similar service through a partnership with Morpho Labs, allowing users in the United States to borrow up to $100,000 in USD Coin (USDC). However, this service was discontinued in 2023 before being reintroduced through Morpho’s decentralized lending protocol.

Other companies such as Ledn are also experiencing increased demand for similar products, as the crypto-backed loans market expands. Based on HFT Market Intelligence’s analysis, the market value of cryptocurrency-based loans is expected to increase from $8.5 billion in 2024 to $45 billion in 2030.

Conclusion

Cryptocurrency-based lending is increasingly becoming a solution for investors looking to obtain liquidity without having to sell their assets. With the development of financial technology and the widespread adoption of crypto, traditional financial institutions and DeFi platforms are starting to take notice of the opportunities in this sector. Xapo Bank comes as one of the pioneers to offer this service centrally, giving Bitcoin holders additional options to optimize their assets.

Also Read: Ethereum (ETH) has the potential to surge sharply, analysts reveal similarities with 2020 trends

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Cryptopolitan. Xapo Bank Introduces Bitcoin-Backed Loans. Accessed March 20, 2025.
• Featured Image: CoinMarketCap