Gibraltar-headquartered financial institution Xapo Bank has launched Bitcoin-backed United States dollar loans. By making this move, the global cryptocurrency-friendly bank is expressing its confidence in crypto lending revival and expressing its support for the long-term holding of Bitcoin. Details and Eligibility For Xapo Bank Loan The new offering is designed to provide long-term BTC holders with access to up to $1 million, secured only by their Bitcoin holdings. Xapo Bank CEO Seamus Rocca highlighted investors’ preference of Bitcoin as a form of collateral rather than traditional assets . In his opinion, Bitcoin “is borderless, highly liquid, available 24/7, and easily divisible, making it uniquely suited for lending.” To ensure clients’ eligibility, the crypto-friendly bank intends to consider the amount and period of Bitcoin holdings a customer holds as the criterion. The most eligible are long-term BTC holders with a long-term investment strategy. Xapo customers who qualify for the loans can choose a repayment schedule from the available options: 30, 90, 180, or 365 days, with no penalties for early repayment. Multiple Crypto Firms Implosion Displace Investors’ Trust Investors’ confidence in and trust in the crypto sector has dwindled significantly in the last couple of years. This was contributed by the numerous collapses recorded in the industry in 2022. Top centralized crypto firms like Celsius Network, FTX , Voyager Digital, and BlockFi imploded, leading to the harsh crypto winter recorded that year. “Many long-term bitcoin holders have steered away from crypto-asset-backed lending after seeing predatory lending practices and products they couldn’t count on,” Rocca said Crypto Industry Attempts to Redeem its Image Post-collapse Since 2022, crypto firms have explored strategies to rebuild customer confidence. Unlike some imploded institutions, Xapo Bank is regulated by the Gibraltar Financial Services Commission under the Financial Services Act 2019. The firm is leveraging this license and hoping investors will return to the burgeoning sector. Rocca believes that the firm can achieve its goal with Bitcoin, citing the features of the flagship cryptocurrency, including its capacity to put financial control back into the hands of investors. More so, comprehensive crypto regulation is emerging globally, making digital asset offerings more attractive to investors. At the moment, the US is pioneering this movement under Donald Trump’s administration. The post Xapo Bank Launches Bitcoin-backed USD Loan appeared first on TheCoinrise.com .
