Xapo Bank launches Bitcoin-backed loans


Xapo Bank is providing its members access to Bitcoin-backed lending and loans, allowing them to leverage their Bitcoin holdings as collateral.

The product will initially offer several features to protect members’ investments and aims to ease borrowing while also enabling qualifying members to retain their Bitcoin as a long-term financial instrument.

By using Bitcoin as collateral, qualifying Xapo Bank members can access USD funds without selling their assets. This preserves the potential for long-term appreciation of their Bitcoin investments and offers lower short-term loan rates compared to typical credit card providers while benefiting from flexible repayment terms and robust security measures.

In addition, eligible members with sufficient Bitcoin holdings can use the in-app calculator to determine their borrowing limit. During the application process, members can select their desired loan amount, with personalised limits of up to $1m, while having complete visibility of the final repayment amount and applicable interest rate.

Seamus Rocca, CEO of Xapo Bank, commented: “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. That’s why we’re doing things differently at Xapo Bank. With over a decade of experience, we’ve built a lending product our members can trust. We give our members the flexibility to pursue their long-term investment strategy while still accessing their Bitcoin’s value when needed. This is what Bitcoin is meant to be, not just a powerful store of value, but an asset that puts financial control back in your hands.”

“Xapo Bank launches Bitcoin-backed loans” was originally created and published by Private Banker International, a GlobalData owned brand.

 


The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.



Source link

Previous articleGoogle Pixel 10 May Bring Better Imaging But Not Performance