Unlocking Wealth: Xapo Bank’s Bitcoin Loans for the Brave Hodlers! 💰🚀

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In the grand theater of finance, where the stage is set in Gibraltar, Xapo Bank emerges, a beacon of hope for the crypto weary. With a flourish, it unveils its latest act: Bitcoin-backed US dollar loans, a daring bet on the revival of crypto lending. 🎭

Ah, the fortunate clients of Xapo! They can now waltz into the world of Bitcoin (BTC) loans, with amounts reaching up to a staggering $1 million. A proclamation shared with CryptoMoon on this fateful day, March 18, reveals this golden opportunity.

Designed for the steadfast hodlers, those who clutch their Bitcoin like a lifeline, this new lending product offers a chance to access cash without relinquishing their precious BTC. Seamus Rocca, the maestro of Xapo Bank, serenades CryptoMoon with wisdom: “Unlike traditional assets, Bitcoin is an ideal form of collateral — it is borderless, highly liquid, available 24/7, and easily divisible, making it uniquely suited for lending.” 🎶

No collateral re-usage

But wait! A twist in the tale! Xapo’s Bitcoin loan product stands apart, for it does not engage in the dark arts of rehypothecation. The collateral remains untouched, a sacred trust, stored in Xapo’s BTC vault, safeguarded by the mystical powers of institutional multiparty computation (MPC) custody.

Eligible clients can choose their repayment schedules like a fine wine selection — 30, 90, 180, or 365 days, with no penalties for those who wish to escape early. A true buffet of options! 🍷

Who is eligible?

But who may partake in this feast? Xapo’s new offering is reserved for the pre-approved elite, based on criteria as selective as a fine art gallery. The amount of Bitcoin holdings and the duration of their steadfastness are the keys to this exclusive club, targeting those with a long-term vision.

Global investors from Europe and Asia may rejoice, but alas, the residents of the United States must watch from afar, like spectators at a grand opera. 🎭

Xapo Bank, under the watchful eye of the Gibraltar Financial Services Commission, has danced through regulations, successfully passporting its banking license to the United Kingdom in 2024. A true triumph! 🏆

While Xapo’s lending spreads across the European Union, the crypto lending landscape remains a wild west, unregulated by local frameworks like the Markets in Crypto-Assets. A curious paradox indeed!

A revival following numerous collapses

As the curtain rises on Xapo Bank’s new BTC loan launch, it comes after the crypto lending industry faced a cataclysmic crisis in 2022. The echoes of the Terra crash and the fall of giants like Celsius and BlockFi still resonate in the halls of finance.

“The collapse of Celsius, BlockFi, and other centralized lenders significantly eroded trust in the crypto lending space,” Rocca laments to CryptoMoon, a somber note in this symphony of finance.

Yet, amidst the ruins, a new demand arises! Borrowers, now wiser, seek platforms with a proven track record, prioritizing security and transparency. Rocca adds, “At the same time, demand for Bitcoin-backed loans is on the rise, particularly among high-net-worth individuals and institutional investors who seek liquidity without selling their Bitcoin holdings.” 💼

In addition to the noble removal of asset rehypothecation, Xapo offers risk management tools and proactive protection, a safety net for the cautious. “In the event of a Bitcoin price drop, customers receive instant notifications, allowing them to either top up their collateral or make partial repayments to maintain their loan status,” Rocca assures.

And Xapo is not alone in this venture; the year 2025 sees others, like Bitcoin developer Blockstream, securing multibillion-dollar investments to launch new institutional funds

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2025-03-18 16:20