Gibraltar’s private bank Xapo has announced that they are now accepting new members. Bitcoin As collateral for loan.
Gadichait, a Xapo manager of investments, explained that customers can access debts up to $1million in Bitcoin, with exceptions for UK residents and Australians. Decrypt.
Chait continued, referring the asset that Xapo had been safeguarding on behalf of its customers since 2013.
As Wall Street firms like Cantor Fitzgerald You can also learn more about Chait stated that Xapo will expand its “one-stop” shop to offer customers more choices in all regions.
Xapo is one of the first cryptobanks to have a physical office in Europe. settling down Gibraltar is a British oversea territory.
The firm had a good year last year You can also read about the importance of this in our article The company has received approval to operate in the UK. This allows them to offer Bitcoin accounts that pay interest, along with other banking products, to their customers.
In the U.S. Bitcoin-backed loans have recently returned. Companies like Coinbase stopped issuing Bitcoin-backed loan in 2023. However, San Francisco’s exchange has continued to do so. restarted In January they tapped into a decentralized loan protocol known as Morpho.
Decentralized financing is used by some asset managers. DeFiBitwise, which recently made an allocation on Maple Finance, the lending protocol for Bitcoins. Bitwise is one of them, and it recently allocated funds to Maple Finance. You can also read about the importance of this in our article Early this month.
Xapo is a centralized company. According to the statement, customers of the bank must approve and have their Bitcoins held in “a vault” until they pay back a loan. This can take up to an entire year.
In 2022, the crypto lending sector was one of the most buzzed about areas in crypto.
After a Bankruptcies in high profile series The practice was criticized by market participants and subsequently abandoned. Regulation Heat The U.S.
“Many long-term Bitcoin holders have steered away from crypto-asset-backed lending after seeing predatory lending practices and products they couldn't count on,” Xapo CEO Seamus Rocca said in a statement. “That’s the reason we do things differently.”
Wences Casares was an entrepreneur from Argentina who started Xapo. Reid Hoffman of LinkedIn described Casares, a co-founder, as being “Patient zero for Bitcoin in Silicon Valley”, he was also one of the early Bitcoin believers in the U.S. Entrepreneur.
Sebastian Sinclair is the editor
