Xapo Bank is widening access to its Xapo BTC Credit Fund, opening the product to all eligible members after a successful early-access phase that attracted $100 million in member allocations. The expansion marks a major step in the bank’s push to build a full suite of regulated wealth-management tools designed specifically for long-term Bitcoin holders.
A Bitcoin-Denominated Wealth Product With Institutional Lending
The BTC Credit Fund allows members to earn yield on their Bitcoin by lending it to vetted institutional counterparties inside a fully regulated structure. Managed by Hilbert Capital, the hedge-fund division of Hilbert Group, the product is positioned as a conservative, risk-adjusted income vehicle rather than a high-yield lending scheme.
During its development, the fund drew more than $200 million in initial investment from Xapo Bank and external backers. The member pilot added another $100 million, enough validation for the bank to move ahead with full public eligibility.
The fund aims to generate 4%–5% annual returns in Bitcoin, depending on conditions, though Xapo emphasizes that its lending approach avoids the aggressive strategies that led to collapses at Celsius, BlockFi, and other crypto lenders. There is no fund-level leverage, and loans are issued only to well-capitalized institutions that pass strict due diligence reviews.
Full Regulatory Approval and Member Requirements
Following regulatory approval in Gibraltar, the BTC Credit Fund is now available to all members who meet eligibility criteria, which may include minimum investment thresholds and an appropriateness assessment to ensure suitability.
With this approval, Xapo continues its strategy of building a regulated digital-wealth ecosystem tailored to Bitcoin holders seeking conservative, long-term financial tools rather than speculative products.
A Broader Suite of Bitcoin Wealth Services
The credit fund anchors Xapo’s growing lineup of Bitcoin-based financial products:
- •Bitcoin Savings Account offering secure storage, lower yield, and instant access
- •Bitcoin-Backed USD Loans with conservative 20%–40% LTV ratios, enabling members to unlock liquidity without selling BTC
- •Global Debit Card that provides seamless fiat spending, no FX fees, and up to 1% cashback in Bitcoin
By combining regulated custody, institutional-grade lending, and hedged Bitcoin financial products, Xapo Bank is positioning itself as one of the most security-focused and compliance-conscious players in the sector, aiming to rebuild trust after several high-profile failures in crypto lending.
With the BTC Credit Fund now fully open, long-term Bitcoin holders have a new, regulated avenue to earn BTC-denominated returns without leaving the traditional banking framework.