Xapo Bank Launches Bitcoin-Denominated BTC Credit Fund

TLDR

• Xapo Bank launches the BTC Credit Fund, allowing members to earn yield through institutional-grade lending markets.
• The fund raised over $100 million in its initial phase and is now available to all eligible members.
• Xapo Bank secured regulatory approval in Gibraltar, ensuring compliance with local standards.
• The product focuses on security, risk management, and short-term lending with no leverage.
• The BTC Credit Fund complements other Xapo Bank offerings like Bitcoin savings accounts and Bitcoin-backed loans.

Xapo Bank has opened access to its BTC Credit Fund, a Bitcoin-denominated wealth product. According to a report by Korea IT Times, the fund allows members to earn yield by participating in institutional-grade lending markets. After a successful initial phase, Xapo Bank is now extending the product to all eligible members.

Product Now Accessible to All Members

The BTC Credit Fund first launched in 2024, following a strategic investment partnership with Hilbert Group. The initial phase of the product raised over $100 million in allocations. Xapo Bank secured regulatory approval in Gibraltar earlier this year, confirming that the product meets local standards.

Following these milestones, the bank has made the offering available to all eligible members. This expansion is part of Xapo Bank’s ongoing effort to provide more financial opportunities for Bitcoin holders. The product is designed to offer a regulated and secure way to invest Bitcoin.

Focus on Security and Risk Management

Xapo Bank designed the BTC Credit Fund with a strong emphasis on security. The product involves deploying Bitcoin through a structured institutional credit process. It works with well-capitalized counterparties and aims to minimize risk by keeping exposures short-term.

The fund operates without leverage, focusing on generating risk-adjusted returns. The lending opportunities undergo thorough due diligence to ensure that they meet the bank’s risk management standards. Ongoing monitoring helps ensure that risks remain within the predefined framework.

Expanding Xapo Bank’s Digital Wealth Offering

The BTC Credit Fund adds to the range of products Xapo Bank offers to its members. Other offerings include a Bitcoin savings account and a Bitcoin-backed loan product. Together, these options give members different ways to manage their Bitcoin holdings in a regulated environment.

Xapo Bank continues to develop its digital wealth ecosystem, providing a variety of financial products. These services are designed to meet different needs, such as wealth growth, liquidity management, and diversification. The bank aims to create a secure platform for members to manage their Bitcoin holdings while following regulatory standards.

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