Xapo Bank 2025 report: Bitcoin-backed loans shift to long-term
Bitcoin-backed lending at Gibraltar-based Xapo Bank is increasingly being used for longer-term financial strategies rather than short-term cash needs, according to the bank’s 2025 Digital Wealth Report. In 2025, 52% of loans were issued with 365-day terms, and many remained outstanding even as new originations slowed later in the year.
The private bank, which primarily serves high-net-worth and private clients, said the pattern indicates members are leveraging Bitcoin as collateral to access liquidity while maintaining long-term market exposure.
The report noted that long-term Bitcoin holders, many of whom now hold a significant share of their wealth in BTC, were comfortable realizing some gains without reducing their core positions. The bank said member conviction generally held firm through periods of elevated market volatility.
The findings cover Xapo’s first full calendar year offering its Bitcoin-backed lending product, which lets eligible clients borrow US dollars against their Bitcoin holdings, and suggest Bitcoin is being used within regulated banking channels as productive collateral in longer-term planning.
From launch narrative to observed behavior
Xapo launched its Bitcoin-backed USD loans on March 18, 2025, aimed at long-term holders seeking liquidity without selling. The bank positioned the product as a conservative alternative to earlier crypto lending models, with terms up to 365 days and comparatively low loan-to-value ratios.
Xapo Bank CEO Seamus Rocca previously said growing confidence in Bitcoin’s long-term prospects was encouraging clients to borrow rather than exit positions, reflecting a shift from short-term speculation to longer-term planning.
The 2025 report indicates that trend has taken hold. Although new loan issuance moderated later in the year, outstanding balances continued to rise, suggesting borrowers kept loans open rather than using them solely for short-term liquidity.
Rocca said the behavior aligns with disciplined, private-bank-style financial practices, with members deploying Bitcoin as productive capital instead of a short-term funding tool.
Loan activity was concentrated in Europe and Latin America, which accounted for 85% of total volume—56% and 29% respectively, according to the bank.
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