Xapo Bank Presents $1 Million Credit Facility with Bitcoin as Collateral!

Jakarta, Pintu News – Based in Gibraltar, Xapo Bank has launched a US dollar loan product that uses Bitcoin (BTC) as collateral. The product is designed to provide an effective liquidity solution for customers who wish to preserve their crypto assets while meeting urgent financial needs.

With the possibility of borrowing up to $1 million, Xapo Bank offers an attractive option for Bitcoin holders who want to maintain their investments while accessing cash.

Check out the full news below!

Features of Bitcoin (BTC) Collateral Loan

Xapo Bank allows customers to apply for loans by pledging their Bitcoin. Customers can borrow up to 40% of the value of their Bitcoin, with a loan limit of $1 million.

The payback duration of these loans can be up to a year, depending on the amount borrowed. The initiative aims to reduce the need to sell Bitcoin on the market during economic uncertainty.

The loan is designed to help customers who require cash without relinquishing ownership of their Bitcoin. By providing a credit facility secured by crypto assets, Xapo Bank seeks to meet customers’ financial needs while helping to maintain Bitcoin price stability in the market.

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Lessons from Previous Failures

In 2022, several crypto financial institutions, such as BlockFi and Celsius, faced failure after offering similar products. These failures occurred due to problems in financial management that led to bankruptcy.

This has raised doubts among investors and worsened the crypto market’s already bearish state. However, Xapo Bank is different because it is a licensed bank that operates a business model more similar to that of conventional financial institutions. This gives hope that Xapo Bank can effectively manage Bitcoin collateral loan products.

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Maintaining Trust and Stability

By offering loans secured by Bitcoin, Xapo Bank assists customers in maintaining their assets and contributes to the stability of the crypto market in general.

This initiative is expected to reduce market selling pressure during economic uncertainty or market turmoil. As a licensed bank, Xapo Bank offers higher security and trust than unregulated crypto platforms. This provides more certainty for customers who wish to utilize their crypto assets without facing unnecessary risks.

Conclusion

By launching loans secured by Bitcoin, Xapo Bank has taken an innovative step to meet customers’ liquidity needs without forcing them to sell their valuable assets.

This approach supports customers in managing their finances and contributes to the growth and stability of the crypto ecosystem more broadly.

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*Disclaimer

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. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Xapo Bank Opens $1M Bitcoin-Backed Credit Line. Accessed on March 19, 2025
• Decrypt. Xapo Bank Debuts Bitcoin Loans, Calls Out Predatory Crypto Lenders. Accessed on March 19, 2025
• Featured image: Trade Brains