Sometimes you need cash, but selling your Bitcoin isn’t the answer. Unexpected expenses, new opportunities, or just better liquidity—it happens to everyone. But selling your Bitcoin means losing its potential for future growth.
That’s why Xapo Bank’s Bitcoin-backed loans are here: to give you quick access to cash without selling your BTC.
With Bitcoin-backed loans, you can use your Bitcoin as collateral to borrow US Dollars instantly. This solution provides liquidity when you need it most while maintaining full ownership of your Bitcoin.
Why Borrow Against Your Bitcoin? A Smarter Alternative to Traditional Loans
Bitcoin-backed loans turn your BTC into a powerful financial tool, giving you instant access to cash without selling. Instead of liquidating your Bitcoin and missing out on future gains, you can use it as collateral to borrow USD instantly. Unlike traditional loans with high interest rates, credit history checks, lengthy approvals, and rigid repayment terms, Xapo Bank’s Bitcoin-backed loans offer a faster, more flexible alternative.
No Credit Checks. Your loan is secured by your Bitcoin, not your financial history.
Fast Approval. Funds are deposited into your USD account in under 1 minute. Since loans are pre-approved and based on collateral, not credit scores, ensuring fast approval and fund transfers.
Flexible Repayments. Repay at any time with no penalties for early repayment.
Competitive Rates. A variable interest rate linked to Federal Reserve rates.
Keep Your Bitcoin. Maintain full ownership and potential upside of your Bitcoin.
How Bitcoin-Backed Loans Work
Deposit Bitcoin into your secure BTC Vault in the Xapo Bank app.
Select a repayment period of 30 or 90 days, with extended terms like 180 and 365 days available on request.
Borrow up to 20% of your Bitcoin’s value in USD.
Track your loan-to-value (LTV) ratio, outstanding balance, and repayment status in real-time.
Need more flexibility? Loans for more than 1 year are considered on a case-by-case basis—simply reach out to your Account Manager to explore your options.
What is Loan-to-Value (LTV)?
The LTV ratio shows how much you can borrow compared to the value of the Bitcoin you provide us. As we use your BTC as collateral, we assess your loan health based on the LTV ratio.
When you first take out a loan, LTV is calculated as the borrowed amount in USD, divided by the dollar value of the Bitcoin collateral.
LTV=Loan Amount%Bitcoin Collateral Value×100%
For example, if you borrow $5,000 against $10,000 worth of Bitcoin, your LTV is 50%.
How LTV works
Your LTV fluctuates as Bitcoin’s price changes. When the BTC price rises, your LTV decreases, giving you more flexibility. When the BTC price drops, your LTV increases, which may require additional collateral or could lead to the liquidation of your Bitcoin to repay the loan.
Keep an eye on your BTC loan’s health
Stay in control with real-time LTV tracking in the Xapo Bank app. The app allows you to check your outstanding balance, assess your loan's health, and maintain control of your LTV. With constant access to this information, you can easily stay informed and manage your finances.
What Can You Do with a Bitcoin-Backed Loan?
A Bitcoin-backed loan lets you access cash without selling, so you can fund major purchases, manage life’s big moments, or build long-term wealth while keeping your BTC for the future. Use your loan to:
Turn your dream home into reality by making a downpayment or funding renovations
Handle life’s unexpected moments with confidence, whether it’s covering medical bills, urgent repairs, or a financial emergency.
Fuel your next big opportunity by expanding your business, investing in stocks, or funding a new venture
Preserve Your Bitcoin While Staying Liquid
With Xapo Bank’s Bitcoin-backed loans, you get the best of both worlds: instant access to USD without selling your BTC.
Put your Bitcoin to work while maintaining your long-term investment strategy. Visit your Xapo Bank app to explore Bitcoin-backed loans and take the first step toward maximizing your portfolio's potential.
For an in-depth look at Bitcoin-backed loans, explore our main page, and for practical tips on managing your loan, don’t miss our FAQs on Bitcoin collateral loans.
