Crypto Custodian Introduces Decentralized Lending Platform for Bitcoin Holders
Xapo Bank Offers Bitcoin-Backed USD Loans to Long-Term Hodlers
Xapo Bank, a digital banking platform, has announced the launch of a new financial product that allows long-term Bitcoin holders to borrow USD against their cryptocurrency assets. The innovative loan solution is designed to provide liquidity to investors who have held onto their Bitcoin for an extended period.
According to the company, the new loan product is specifically tailored for long-term Bitcoin holders who are looking to access their USD funds without having to sell their Bitcoin. The loan is collateralized by the borrower's Bitcoin, which is held in a segregated account at Xapo Bank.
The minimum loan amount is set at $5,000, and the maximum loan-to-value ratio is 50%. This means that if a borrower has a Bitcoin balance of $10,000, they can borrow up to $5,000 in USD. The loan term is initially set at 12 months, with the option to renew or repay the loan early.
Xapo Bank's loan product is designed to provide a safe and secure way for long-term Bitcoin holders to access their USD funds without having to sell their cryptocurrency. The company claims that the loan is fully collateralized by the borrower's Bitcoin, reducing the risk of default.
"We're excited to offer this innovative loan product to our customers," said Wences Casares, CEO of Xapo Bank. "Our goal is to provide a safe and secure way for long-term Bitcoin holders to access their USD funds without having to sell their cryptocurrency. We believe this product will be particularly appealing to investors who are looking to diversify their portfolio and access their USD funds without having to liquidate their Bitcoin holdings."
Xapo Bank's loan product is currently available to eligible customers in the United States, with plans to expand the service to other countries in the near future. The company has a strong track record of providing innovative financial solutions to cryptocurrency investors, and this latest loan product is expected to be a hit with long-term Bitcoin holders.