#Btc

Xapo Bank launches bitcoin loans for cash access without the need to sell.

The new loans from Xapo Bank allow Bitcoin holders to access cash without having to sell their holdings.

The cryptocurrency-friendly bank based in Gibraltar introduced its new product on Tuesday, which offers qualified members access to Bitcoin-backed loans of up to USD $1 million. This allows holders of the largest cryptocurrency to leverage the fiat value of their assets without having to sell them.

Seamus Rocca, CEO of Xapo Bank, explained to the media that the new loan product is designed for long-term Bitcoin users who want to access cash and keep their tokens.

"If you are a Bitcoin holder and believe its price will rise, selling is difficult," Rocca explained to CoinDesk.

"Unlike traditional assets, Bitcoin is an ideal form of collateral: it has no borders, is highly liquid, is available 24/7, and is easily divisible, making it especially suitable for loans," he added.

The CEO continued detailing that the product is aimed at Bitcoin investors looking to buy a house, improve their property, acquire a new car, pay for school tuition, or address any other eventual need without having to sell.

"Sometimes life gets in the way: You want to remodel your kitchen, you have to pay for school tuition. Being able to access some liquidity in Bitcoin with someone you trust is a very attractive product for our customer base," said Rocca.