Bitcoin-backed borrowing at Xapo Bank is increasingly being used for long-term financial planning rather than short-term liquidity, according to the bank’s 2025 Digital Wealth Report.

The Gibraltar-based bank said 52% of Bitcoin-backed loans issued in 2025 carried a 365-day term, with many remaining open even as new loan creation slowed later in the year. Xapo primarily serves high-net-worth and private banking clients.

The trend suggests borrowers are using Bitcoin as collateral to unlock liquidity while maintaining long-term exposure. Xapo noted that many long-term Bitcoin holders felt comfortable taking partial profits without reducing their core holdings, reflecting sustained conviction despite market volatility.