Xapo Bank Expands Bitcoin Credit Fund for Long-Term Holders

Xapo Bank has opened its Xapo BTC Credit Fund to all eligible members following a successful early-access phase that secured $100 million in member allocations. This expansion is a significant move in the bank’s strategy to create a full suite of regulated wealth-management tools for long-term Bitcoin holders.

Key Features of the BTC Credit Fund:

• Objective: Allows members to earn yield on their Bitcoin by lending it to vetted institutional counterparties within a fully regulated framework.
• Management: Managed by Hilbert Capital, the hedge-fund division of Hilbert Group.
• Strategy: Positioned as a conservative, risk-adjusted income vehicle, prioritizing security over high-yield lending. It avoids the aggressive strategies used by failed crypto lenders like Celsius and BlockFi.
• Target Returns: Aims to generate 4%–5% annual returns in Bitcoin.
• Safety Measures: No fund-level leverage is used, and loans are strictly issued to well-capitalized institutions after rigorous due diligence.
• Funding: The fund initially drew over $200 million from Xapo Bank and external backers, which was supplemented by $100 million from the member pilot.
• Regulation: It has received full regulatory approval in Gibraltar.

Broader Bitcoin Wealth Ecosystem

The BTC Credit Fund is the anchor for Xapo Bank’s growing lineup of compliance-conscious, Bitcoin-based financial services, which includes:

• Bitcoin Savings Account: Offers secure storage, a lower yield, and instant access.
• Bitcoin-Backed USD Loans: Provides liquidity with conservative 20%–40% Loan-to-Value (LTV) ratios.
• Global Debit Card: Enables seamless fiat spending, zero FX fees, and up to 1% Bitcoin cashback.

By combining regulated custody and institutional lending, Xapo Bank aims to rebuild trust in the sector and provide long-term Bitcoin holders with a new, regulated way to earn BTC-denominated returns within a traditional banking structure.