Xapo Bank Revamps Crypto Lending with Bitcoin-Backed Loans

Xapo Bank, a Gibraltar-regulated wealth manager known for safeguarded bitcoin custody, has introduced bitcoin-backed loans up to $1M. With a conservative loan-to-value ratio of 20-40%, the new product allows long-term bitcoin holders to access liquidity without selling their assets, thereby reducing liquidation risk even if bitcoin’s price falls moderately. The announcement also mentions the recent addition of Ether (ETH) to Xapo’s custody services, indicating an expansion in its asset support. This move follows a cautious comeback in crypto-backed lending, with Coinbase having reintroduced similar products earlier. While the innovative lending framework and trusted regulatory status suggest a positive sentiment and long-term stability, market volatility and historical lending industry challenges continue to pose risks.