Xapo Bank has introduced its BTC Credit Fund, a Bitcoin-based wealth solution crafted to provide institutional-level lending options to qualified participants. After securing regulatory clearance in Gibraltar, the fund—which has
attracted investments exceeding $100 million
, is now open to all eligible investors. This offering prioritizes robust security, comprehensive risk controls, and short-term lending, operating on a no-leverage basis to deliver
returns adjusted for risk
. Renowned for its crypto custody expertise, Xapo Bank has broadened its digital asset services to feature
Bitcoin
savings accounts and loans secured by Bitcoin,
building a well-rounded portfolio
.
The BTC Credit Fund is operated in collaboration with Hilbert Group, which serves as an independent investment manager. Bitcoin is allocated through a "completely institutional credit process,"
with lending oversight
provided by Hilbert Capital's investment committee. Tommy Doyle, Xapo's global head of relationship management,
emphasized how the product fits
within the bank’s broader BTC wealth lineup, highlighting its attractiveness to long-term investors seeking steady returns with controlled risk. The fund’s design incorporates
thorough due diligence
and continuous supervision to maintain adherence to established risk guidelines.
This growth mirrors wider developments in the Bitcoin lending market, which has experienced renewed momentum after the downfall of major lenders such as BlockFi and Celsius in 2022. New players like Coinbase Borrow and centralized lenders including Ledn have stepped in,
reinforcing trust in the industry’s durability
. Xapo’s move into this arena highlights the increasing institutional embrace of Bitcoin, as regulated offerings continue to connect traditional finance with digital assets.
The regulatory landscape for Bitcoin remains inconsistent, especially in the United States, where
overlapping regulatory authorities
such as the SEC, CFTC, and FinCEN add layers of complexity. While the SEC considers Bitcoin a commodity, it applies securities regulations to other digital assets,
resulting in regulation driven by enforcement actions
. By operating out of Gibraltar, Xapo benefits from a more unified regulatory setting, allowing it to serve a global clientele while adapting to the shifting U.S. regulatory scene.
Making the BTC Credit Fund accessible to retail investors represents a significant milestone in the mainstream adoption of cryptocurrencies. By making yield-generating Bitcoin products easier to access, Xapo seeks to reduce entry barriers for everyday savers looking for alternatives to conventional savings options. Nevertheless, ongoing challenges like regulatory ambiguity and market fluctuations remain, demanding persistent innovation and compliance. As the Bitcoin sector evolves, initiatives like Xapo’s fund could further drive the integration of digital assets into mainstream financial systems.
