Bitcoin borrowing shifts to long-term planning

Bitcoin-backed borrowing at Xapo Bank is increasingly being used for long-term financial planning rather than short-term liquidity, according to the bank’s 2025 Digital Wealth Report.

The report said 52% of Bitcoin-backed loans issued in 2025 carried 365-day terms, with many remaining open even as new loan issuance slowed later in the year.

“Long-term Bitcoiners, many of whom are now holding the majority of their wealth in Bitcoin, finally felt comfortable taking some profit,”

Xapo said in the report, adding that conviction in Bitcoin holdings largely remained intact.

Xapo said the trend reflects members using Bitcoin as collateral to unlock liquidity while preserving long-term exposure, rather than relying on loans for temporary cash needs.

The data covers Xapo’s first full year operating its Bitcoin-backed lending product, which allows eligible clients to borrow US dollars against their Bitcoin holdings.

Xapo launched the product in March 2025 with loan terms of up to one year and conservative loan-to-value ratios, positioning it as a regulated alternative to earlier crypto lending models.

The bank said Europe and Latin America accounted for 85% of total loan volume, underscoring strong demand for Bitcoin-backed borrowing outside the United States.

At the time of reporting, Bitcoin price was $75,809.57.