How we secure our financial health
To ensure our operational stability, we monitor our finances as closely as our security systems. With our large-scale Bitcoin reserve and low-risk traditional investments we go above and beyond industry standards to secure our financial health—no matter what happens in the market.
Bitcoin
in reserve
Backed by a reserve
Our large-scale private Bitcoin reserve helps secure our financial stability.
These significant holdings provide financial security and ensure we have high liquidity so we can stay resilient in the face of unexpected events.
Segregation
of funds
![We keep your Bitcoin completely separate from ours.](/images/security/reserve/card-2.jpg)
Accessible funds
We keep your Bitcoin completely separate from ours.
We don’t lend out your Bitcoin, and we don’t mix funds. That means your holdings are always 100% yours, and 100% accessible.
Unleveraged
assets
![Unlike most banks, we don’t lend out your funds.](/images/security/reserve/card-3.jpg)
Zero debt
Unlike most banks, we don’t lend out your funds.
We don’t offer people credit cards or mortgages. This reduces risk and ensures liquidity—even if all our members withdrew their entire balance on the same day.
Learn more about our secure operationsLow risk
investments
![When generating interest for our members, we limit ourselves to low-risk investments like triple-A rated U.S. treasury bonds that are very close to reaching maturity.](/images/security/reserve/card-4.jpg)
Minimal risk
When generating interest for our members, we limit ourselves to low-risk investments like triple-A rated U.S. treasury bonds that are very close to reaching maturity.
By selecting these trusted investments that are as close to zero-risk as possible, we ensure our funds stay protected and easily accessible.
Learn how we generate interestCapitalisation that goes above and beyond
Take a look at our balance sheet:
Capital ratio
That’s almost 4x the capital we are required to hold.
396%
≈100%
Core Equity Tier 1 Capital Ratio
That’s 18x the 7% standard requirement for this measure of a bank's financial strength.
132.8%
≈7%
Liquidity Coverage Ratio (LCR)
That’s 3,000x more than the 100% required by European Law for this measure of net cash outflows during a 30-day stress period.
3,237.5%
100%
Net Stable Funding Ratio
That’s 3x the 100% required by European Law for this measure of long-term liquidity.
311.6%
100%
*Position as of Jan 1 2024
![Seated gentleman engaging with the Xapo Bank app on his mobile phone, overlaid with an orange hue.](/images/security/reserve/picture-description.jpg)
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