Bitcoin-backed loans ‘obvious’ next step — Xapo Bank CEO
Bitcoin holders are increasingly borrowing against their crypto as market confidence rises, with Bitcoin priced around $95,000 and institutional adoption growing. Xapo Bank launched a lending product allowing users to borrow US dollars using Bitcoin as collateral, offering loans up to $1 million. The demand for Bitcoin-backed loans is driven by a shift towards long-term investment strategies and expectations of broader institutional involvement. Xapo Bank's loans feature loan-to-value (LTV) ratios of 20%, 30%, and 40%, providing flexibility while managing risk. Borrowers can avoid selling Bitcoin during emergencies, maintaining exposure to potential price appreciation. This trend indicates a move from a "hodl" culture to a more dynamic use of Bitcoin assets.
