Bitcoin-backed borrowing at Gibraltar-based Xapo Bank is increasingly being used as part of longer-term financial planning rather than for short-term liquidity needs, according to the bank’s 2025 Digital Wealth Report.

Shared with Cointelegraph, the report shows that 52% of Bitcoin-backed loans issued by Xapo in 2025 had a 365-day duration. Many of these loans remained outstanding even as the pace of new loan issuance slowed toward the end of the year.

Xapo, which primarily serves high-net-worth individuals and private clients, said the pattern points to members using Bitcoin as collateral to access liquidity while maintaining long-term exposure, instead of relying on loans for temporary cash flow.

“Long-term Bitcoiners, many of whom are now holding the majority of their wealth in Bitcoin, finally felt comfortable taking some profit,” the report said. “At the same time, the underlying conviction didn’t waver. Most of our long-term members continued to hold the bulk of their Bitcoin through periods of heavy market movement.”

The data reflects Xapo’s first full calendar year offering Bitcoin-backed lending, which allows eligible clients to borrow US dollars against their Bitcoin holdings. The findings provide insight into how Bitcoin is being integrated into regulated banking frameworks as productive collateral tied to broader wealth planning strategies.

From product launch to real-world behavior

Xapo introduced its Bitcoin-backed USD loan product on March 18, 2025, targeting long-term holders seeking liquidity without selling their Bitcoin. At launch, the bank positioned the offering as a more conservative alternative to earlier cryptocurrency lending models, with loan terms of up to 365 days and relatively modest loan-to-value ratios.

Xapo Bank CEO Seamus Rocca previously told Cointelegraph that growing confidence in Bitcoin’s long-term prospects was encouraging holders to borrow against their assets rather than liquidate them, signaling a move away from short-term speculation toward longer-horizon financial decision-making.

According to the 2025 report, that thesis has played out in practice. While the creation of new loans slowed later in the year, total outstanding balances continued to rise, suggesting borrowers were keeping positions open instead of using loans as short-term liquidity bridges.

Regional concentration and private-bank behavior

Rocca said in the report that the trend reflects “disciplined, private-bank-style financial behaviour,” with members treating Bitcoin as productive capital rather than a tool for short-term liquidity management.

Loan activity was also geographically concentrated. Europe and Latin America together accounted for 85% of total loan volume, with Europe representing 56% and Latin America 29%, according to Xapo Bank.

Sources:

https://cointelegraph.com/news/xapo-bitcoin-backed-loans-long-term-planning-2025

https://www.bitget.com/amp/news/detail/12560605181078