Bitcoin-backed borrowing at Gibraltar-based Xapo Bank is increasingly being used for long-term financial planning rather than short-term liquidity, according to the bank’s 2025 Digital Wealth Report. The report, shared with Cointelegraph, says 52% of the Bitcoin-backed loans issued by Xapo in 2025 carried a 365-day term, and many of those loans remained open even as new loan creation slowed later in the year.
Xapo, which primarily serves high-net-worth and private clients, launched its Bitcoin-backed USD loans on March 18, 2025, allowing qualified clients to borrow dollars against their Bitcoin holdings. The product was positioned for long-term Bitcoin holders seeking liquidity without selling their assets, with conservative features such as loan terms up to 365 days and relatively low loan-to-value ratios.
The 2025 report — Xapo’s first calendar year operating the lending product — suggests the launch narrative matched observed behavior. While issuance moderated later in the year, outstanding loan balances continued to grow, indicating borrowers were keeping loans open instead of using them for temporary cash needs. “Long-term Bitcoiners, many of whom are now holding the majority of their wealth in Bitcoin, finally felt comfortable taking some profit,” the report said, noting that most long-term members continued to hold the bulk of their Bitcoin through periods of heavy market movement. Xapo Bank CEO Seamus Rocca described the pattern as “disciplined, private-bank-style financial behaviour,” with members using Bitcoin as productive capital.
Loan volumes were concentrated geographically: Europe accounted for 56% of total loan volume and Latin America 29%, combining for 85% of activity. The data provides a window into how Bitcoin can function as regulated, productive collateral within traditional banking rails, integrated into longer-term wealth management rather than short-term speculative finance.
