Xapo Bank Launches Bitcoin-Backed USD Loans Up to $1 Million for Long-Term Holders

Xapo Bank, headquartered in Gibraltar, announced on March 18 the launch of Bitcoin-backed USD loans, targeting long-term Bitcoin holders. These pre-approved clients can access loans up to $1 million, with repayment schedules of 30, 90, 180, or 365 days and no penalties for early repayment. The bank emphasizes a conservative 20%-40% loan-to-value ratio to safeguard customers' Bitcoin, storing collateral in Xapo's BTC vault using institutional multiparty computation (MPC) custody, avoiding rehypothecation. This offering is available to global investors in regions like Europe and Asia, excluding U.S. residents. The interest rate on the dollar is around 10%. Xapo also offers risk management tools and instant notifications in the event of a Bitcoin price drop, allowing customers to adjust their collateral or make partial repayments.