Bitaigen Research 
Xapo Bank officially launched a USD loan product on March 18 2025 that accepts Bitcoin as collateral. The offering is tailored for long‑term Bitcoin holders who need liquidity but do not wish to sell their positions.
The service is positioned as a more robust alternative to the early‑stage crypto‑lending models, providing loan terms of up to 365 days and employing a relatively conservative loan‑to‑value (LTV) ratio. It is aimed at high‑net‑worth individuals as well as private‑bank clients.
Xapo Bank’s Chief Executive Officer, Simus Roca, told *Cointelegraph* that as confidence in Bitcoin’s long‑term outlook grows, holders are increasingly opting to obtain cash via borrowing rather than liquidating their assets. This shift signals an industry evolution from short‑term speculation toward a focus on long‑term asset allocation.
“We have observed that, as Bitcoin holders upgrade their asset‑allocation needs, short‑term borrowing is being replaced by more strategically planned, long‑duration secured loans. In this article we will dissect the design logic behind Xapo Bank’s newest Bitcoin‑backed loan, explore its impact on liquidity management for high‑net‑worth users, and help readers understand the opportunities created by this transition.”
From the Initial Promotion to Observed Behavior
According to Xapo’s Digital Wealth Report released in 2025, the way Bitcoin‑backed loans are used is gradually moving toward long‑term financial planning rather than merely satisfying short‑term cash requirements. The report reveals that 52 % of the Bitcoin‑secured loans issued that year were set with the maximum 365‑day term, and even as the issuance of new loans slowed in the latter half of the year, those longer‑duration loans remained open and active.
The report further shows that despite a slowdown in the pace of new disbursements, the total amount of outstanding loans continued to rise. This trend indicates that borrowers are not treating the credit line as a fleeting liquidity tool; instead, they prefer to retain exposure to Bitcoin while receiving the necessary funding.
Member feedback quoted in the report underscores the sentiment: “Long‑term Bitcoin holders—many of whom have allocated the majority of their wealth to Bitcoin—can now monetize a portion of their assets with greater peace of mind. Even during periods of sharp market volatility, they continue to hold the vast majority of their Bitcoin, and their conviction remains unshaken.”
Geographically, loan volume is concentrated in Europe and Latin America, together accounting for 85 % of total loan value. Europe alone contributes 56 % of the volume, while Latin America adds another 29 %.
*Bitcoin holdings of members by region, month‑over‑month data. Source: Xapo Bank*
In summary, Bitcoin (BTC) lending is transitioning from satisfying immediate liquidity needs to supporting long‑term financial strategies. For readers interested in deeper analysis of how Bitcoin lending is evolving from short‑term cash flow to long‑term planning, stay tuned to Bitaigen’s (Bitagen) upcoming reports.
Additional notes for a global audience:
- All loan amounts are denominated in USD, and fiat transfers are typically processed via SEPA or SWIFT networks depending on the borrower’s jurisdiction.
- U.S. residents must use Binance.US for any related cryptocurrency transactions, as the global Binance platform is not available to them.
- Cryptocurrency gains, including any profit realized from loan collateral or subsequent trades, may be subject to tax in the borrower’s local jurisdiction; users should consult a tax professional to ensure compliance.
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