Bitcoin borrowing shifts from short-term liquidity to long-term planning: Xapo

Xapo Bank’s Digital Wealth Report says borrowers are keeping Bitcoin-backed loans open longer during the product’s first year of activity.

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

Shared with Cointelegraph, the report says 52% of the Bitcoin-backed loans issued by Xapo in 2025 carried a 365-day term, with many of those loans remaining open even as new loan creation slowed later in the year.

The bank, which primarily caters to high-net-worth individuals and private clients, said the trend reflects members using Bitcoin as collateral to unlock liquidity while preserving long-term exposure, rather than tapping loans for temporary cash needs.

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