Xapo Bank has announced the expansion of its yield-bearing Bitcoin lending product, the Xapo BTC Credit Fund, making it available to all eligible customers following a successful initial phase. The fund, developed in partnership with Hilbert Group, attracted $100 million in member allocations during its initial launch and received an initial investment of over $200 million from Xapo and other investors.
According to the bank, the fund deploys deposited Bitcoin through a fully institutional credit process, with lending decisions overseen by Hilbert Capital's investment committee. Tommy Doyle, global head of relationship management at Xapo Bank, stated, "The Xapo BTC Credit Fund fits nicely into our suite of BTC wealth products in delivering consistent yield, with a limited low risk appetite, for our long-term BTC holders." Seamus Rocca, CEO of Xapo Bank, emphasized the vision to create a digital wealth ecosystem for Bitcoin holders, noting the phased approach to offering more ways to grow and manage Bitcoin within a secure banking framework.
Xapo Bank, regulated as a credit institution by the Gibraltar Financial Services Commission, previously launched bitcoin-backed U.S. dollar loans of up to $1 million and was the first bank to enable interest-bearing bitcoin and fiat accounts in the UK. The expansion reflects a broader rebound in Bitcoin's credit ecosystem, which faced challenges after the 2022 collapse of lenders like BlockFi and Celsius.
The fund is incorporated in the Cayman Islands and regulated as a mutual fund, with exposures continuously monitored to ensure compliance with risk frameworks. Eligibility is based on specific investor situations, including minimum investment requirements and due diligence assessments.
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