If you've been securing your Bitcoin with us at Xapo, you may have already enjoyed earning interest through our BTC Savings—often considered one of the simplest crypto savings accounts available. Now, subject to regulatory approval and integration with Xapo Bank, we're excited to introduce something new that could help your Bitcoin work even harder for you and grow your wealth further: the upcoming BTC Credit Fund.
What is it and who is it for?
This new opportunity is designed specifically for Bitcoin holders seeking higher, Bitcoin-denominated yield. It's delivered through a structured credit fund, the BTC Credit Fund. Think of it as the next level up from our BTC Savings account—it offers the potential for greater growth (targeting up to 5% annual returns*) but with a different approach to how your Bitcoin is put to work.
Unlike traditional savings, where your Bitcoin remains idle, the BTC Credit Fund actively deploys your Bitcoin by lending it to institutional-grade counterparties through structured credit transactions. It's managed by a team of experienced professionals who use sophisticated strategies to generate these higher returns. A key part of their approach is careful risk management, ensuring that potential rewards are balanced against potential risks.
To gain access to the BTC Credit Fund you will need to satisfy eligibility requirements that may vary based on your specific situation and may include, amongst other things, a minimum investment requirement and appropriateness assessment. Initially, the BTC Credit Fund will not be accessible to members in the United Kingdom.
How do we help grow your Bitcoin wealth?
When you invest in the BTC Credit Fund, your Bitcoin becomes part of a larger pool that's carefully managed by investment experts. They use this combined Bitcoin to generate returns, by lending it to thoroughly vetted, well-capitalised institutional borrowers. A key focus is diversification, meaning your Bitcoin isn't heavily concentrated with any single borrower, which is part of the risk management strategy.
Both your holdings within Xapo Bank and the returns you gain are protected by top-tier safeguards. From advanced MPC technology to secret Swiss bunkers in the Alps, we combine physical and digital security to keep your assets safe at all times. Security is at the core of everything we do.
Crucially, any returns of your investment are denominated in Bitcoin. This means if you invest 1 BTC and earn 5% over a year, you'll receive back 1.05 BTC—regardless of fluctuations in Bitcoin's price against fiat currencies.
There is a 30-day minimum lock-in period, which gives the fund managers enough time to deploy your Bitcoin effectively. This is remarkably flexible compared to other platforms that might lock up your funds for months or even years. After the expiry of the lock-in period, you're free to redeem your investment whenever you wish, giving you control over your Bitcoin.
BTC Savings vs. BTC Credit Fund: what’s the difference?
Choosing the BTC Credit Fund depends on your comfort level with risk and your financial goals. Here’s a simple comparison:
BTC Savings:
Think of this like a traditional savings account, but for your Bitcoin.
Offers a straightforward way to earn a modest interest rate (currently 0.5% APY) on your holdings.
How is the interest generated? Xapo uses its own funds to generate yield and shares a portion with you. Your personal bitcoin holdings are never deployed, lent out, or put at risk to generate this interest – they stay securely with us.
Access terms: No lock-up period. You maintain complete, on-demand access to your funds 24/7, allowing you to withdraw your Bitcoin whenever you need it.
BTC Credit Fund:
Think of this more like joining an investment club for your Bitcoin, managed by experts.
Aims for higher potential returns (targeting up to 5% APY*) by actively deploying your Bitcoin in managed credit strategies.
Your Bitcoin is invested, which involves risk. The value can go down as well as up, and returns aren't guaranteed.
There is no investment cap, so you can invest as much Bitcoin as you want.
Access terms: The fund has a minimum 30-day redemption notice period. This means you need to notify us at least 30 days in advance if you wish to withdraw your Bitcoin, with redemptions processed monthly.
Best for: Eligible members comfortable with investment risks who are looking for an opportunity to achieve higher growth on their Bitcoin holdings over the long term. There are eligibility requirements, including a minimum investment (the Bitcoin equivalent of USD 100,000) and an appropriateness assessment.
Getting started
If you're interested in this opportunity to grow your Bitcoin wealth, the first step is to join our waitlist. This will ensure you're among the first to know when the fund becomes available and can receive updates about its launch.
Our BTC Savings will continue to be available for all members, offering a reliable way to earn interest on your Bitcoin without any risk or commitment. You'll maintain complete, on-demand access to your funds 24/7 with no lock-up periods whatsoever.
We believe in providing options that suit different member needs. The introduction of the BTC Credit Fund offers a sophisticated, institutional-grade investment opportunity for those seeking higher Bitcoin-denominated returns, while BTC Savings continues to provide a simple way to earn risk-free yield.
