Xapo Bank’s 2025 Digital Wealth Report shows its Bitcoin-backed lending is being used more for long-term planning than short-term liquidity. Shared with Cointelegraph, the report notes that 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 lending slowed later in the year.
The Gibraltar-based bank, which serves predominantly high-net-worth and private clients, launched Bitcoin-backed USD loans on March 18, 2025. The product let qualified clients borrow dollars against their Bitcoin holdings while keeping exposure to the asset. It was designed with conservative features—loan terms up to 365 days and relatively low loan-to-value ratios—targeting long-term holders who want liquidity without selling.
As Xapo’s first full calendar year offering the lending product, the 2025 report suggests the launch messaging matched client behavior. Although new loan issuance moderated toward year-end, outstanding balances continued to rise, implying borrowers tended to keep loans open rather than use them for temporary cash needs. The report commented that ‘long-term Bitcoiners, many of whom are now holding the majority of their wealth in Bitcoin, finally felt comfortable taking some profit.’ Most long-term members reportedly retained the bulk of their Bitcoin through volatile market periods.
Xapo CEO Seamus Rocca characterized the trend as ‘disciplined, private-bank-style financial behaviour,’ noting members are using Bitcoin as productive capital within a wealth-management context. Lending volumes were geographically concentrated: Europe accounted for 56% of total loan volume and Latin America 29%, together representing 85% of activity.
The data illustrates how Bitcoin can operate as regulated, productive collateral inside traditional banking rails, integrated into longer-term wealth strategies rather than purely short-term speculative finance.