A BITCOIN LOAN
Xapo Bank stands out as a fully licensed bank, offering a regulated platform for responsible lending solutions. The institution aims to differentiate itself from Celsius and BlockFi, which went bankrupt in 2022, seriously undermining user trust in this type of service:
"Many long-term BTC holders have shied away from crypto-backed loans after noticing predatory lending practices and products they could not rely on," said Seamus Rocca of Xapo Bank.
This new offering allows members to leverage their BTC holdings as collateral to access dollar credits without having to sell their assets, unless the BTC price falls below the loan-to-value threshold.
Eligible members can calculate their borrowing limit via the Xapo Bank app, with a transparent final repayment amount and clear interest rate. Funds are deposited instantly into the member's USD bank account upon approval, while the corresponding bitcoins are locked until the loan is repaid.
Xapo Bank offers the option to repay early without penalties, with a real-time tracking tool to monitor the loan status and economic risk factors. Users can borrow more than the pre-approved amounts subject to additional checks.
With this new loan offering, Xapo Bank continues to innovate in the cryptocurrency banking sector, providing solutions tailored to the needs of Bitcoin investors.