Xapo Bank’s 2025 Digital Wealth Report shows that Bitcoin-backed borrowing is increasingly being used for long-term financial planning, with 52% of loans having a 365-day term. Members are using Bitcoin as collateral to unlock liquidity while maintaining long-term exposure, rather than for short-term cash needs. The report reflects a shift towards longer-term thinking among Bitcoin holders.

Xapo Bank launched its Bitcoin-backed USD loans in 2025, targeting long-term Bitcoin holders looking for liquidity without selling their assets. The bank offers loan terms of up to 365 days and low loan-to-value ratios, positioning the product as a conservative alternative to previous crypto lending models. Confidence in Bitcoin’s long-term outlook is encouraging holders to borrow rather than liquidate.

The 2025 report indicates that borrowers are keeping loans open for longer periods rather than using them for short-term liquidity needs. Loan issuance slowed later in the year, but outstanding loan balances continued to grow, showcasing members’ disciplined financial behavior. Loan volumes are concentrated in regions like Europe and Latin America, which accounted for 85% of total loan volume.

Xapo Bank’s CEO noted that members are using Bitcoin as productive capital rather than a short-term liquidity tool, reflecting private-bank-style financial behavior. The data from the report shows a trend towards using Bitcoin for longer-term financial planning within regulated banking rails. Loan volumes are highest in Europe and Latin America, demonstrating the growing adoption of Bitcoin-backed borrowing in these regions.

Read more at Cointelegraph: Xapo Bank Data Shows Bitcoin-Backed Loans Skew Long-Term