Xapo Data Shows Bitcoin Emerging as Productive Collateral in Banking

[madtrader]

Xapo Bank’s first full year of Bitcoin-backed lending offers new insight into how Bitcoin is being used within regulated banking systems.

Launched in March 2025, Xapo’s USD loan product allows qualified clients to borrow against Bitcoin with terms of up to one year and relatively conservative loan-to-value ratios. While loan issuance moderated later in the year, outstanding balances continued to rise, indicating borrowers were keeping loans open rather than using them for short-term cash needs.

CEO Seamus Rocca said the pattern reflects “disciplined, private-bank-style financial behaviour,” with Bitcoin increasingly treated as productive capital. Loan demand was strongest in Europe and Latin America, which together accounted for 85% of total loan volume.

[bonk]

basically, bitcoin is evolving from speculative asset to productive capital in regulated finance. interesting trend.