Xapo Bank has made waves in the financial world by launching a new loan service that allows customers to take advantage of their bitcoin as a guarantee, an important step towards the integration of cryptocurrency in consumer finances.
On March 19, 2025, the Bank based in Gibraltar announced the service, allowing qualified members to borrow up to $ 1 million against their Bitcoin holdings. However, customers of the United Kingdom and Australia are notably excluded from this offer.
As one of the first banks to establish a physical presence in Europe in the middle of the pandemic cryptocurrency boom, Xapo positioned himself as a pioneer in the banking sector. The bank acquired the reputation of adopting the cryptocurrency services early, after having set up its head office in Gibraltar, a British territory abroad, in times of growing interest for Bitcoin.
In collaboration with the development of Xapo, established banking institutions are strongly interested in the booming arena of cryptocurrencies. For example, Cantor Fitzgerald has unveiled its Bitcoin financing section and associates itself with cryptographic companies such as Digital and Copper.co, mainly helping in its expansion within the global Bitcoin market.
Last year, Xapo Bank received a regulatory license in the United Kingdom, which enabled it to offer Bitcoin accounts with interest alongside traditional banking services.
Meanwhile, the cryptocurrency loan landscape is becoming more and more competitive. Coinbase, one of the main exchanges of cryptocurrency, which had previously interrupted its digital loan services supported in currency in 2023, recently rekindled its offers thanks to a strategic partnership with Morpho Labs. This new service, suitable for American users (excluding those in New York), allows customers to borrow up to $ 100,000 in stablescoins USDC.
Max Branzburg, vice-president of Coinbase, stressed the objectives of this service, declaring that he seeks to improve the usefulness of Bitcoin in decentralized contexts. This updated loan model rations borrowing processes by eliminating the need for credit checks and additional costs, although customers are warned to monitor their guarantee values to prevent liquidation.
The new Coinbase offer works on the basis, the company Ethereum Layerum of the company. When the loans are removed, the crypto warranty is converted into a bitcoin wrapped in Coinbase (CBBTC), which is a token that Coinbase guarantees is supported one by one with the bitcoin held under his care.
Despite the rise of decentralized financing loan initiatives (DEFI) observed in services such as Coinbase, Xapo Bank sticks to a more traditional and centralized loan approach. Here, customers must receive the approval of the bank, and their bitcoin is stored safely “in a safe until the loan is reimbursed”, the loan conditions extending up to a year.
Seamus Rocca, CEO of XAPO, has shared information on the cautious attitude of many long -term crypto holders now have bonds supported by crypto after negative experiences with “predatory and defective products” in the past. “This is why we do things differently,” said Rocca, stressing Xapo’s commitment to offer responsible loan practices.
The new loans supported by Bitcoin by Xapo Bank and the reintroduction of loan services by Coinbase reflect a growing trend which allows Bitcoin holders to access liquidity without liquidating their assets, thus avoiding taxable transactions. While the landscape of the finance of cryptocurrencies continues to evolve, the private and public sectors clearly seize the opportunities aimed at the growing interest continuously for digital currencies.
This renewed concentration on responsible cryptography loans can point out a transformative change in the way individuals and institutions engage with cryptocurrency in their financial life.
