How our new growth solution invests your Bitcoin: A simple guide to the strategy

Grow

December 2, 2025

Written by Xapo Bank

See how your Bitcoin can be invested through a carefully managed lending approach, trusted institutional partners, and strong risk controls.

How our new growth solution invests your Bitcoin: A simple guide to the strategy

At Xapo Bank, we want to super power your Bitcoin. We’re constantly innovating to offer members more ways to earn, and our new Bitcoin growth solution is the newest addition to our suite of earnings products – designed to help long-term Bitcoin holders grow their BTC safely, simply, and without the stress of trading..

It’s designed for Bitcoin holders who think long-term: those who want to stay in Bitcoin while earning more of it. Everything is managed seamlessly in the Xapo Bank app, with your Bitcoin always protected under Xapo’s trusted security framework.

How it works

We think it’s important you know exactly how your Bitcoin is put to work in our new solution. Our approach focuses on security, transparency, and steady growth – with no hidden tricks or complex financial terms.

At its core, your Bitcoin is lent to established, creditworthy financial institutions. After all relevant costs are deducted, the remaining earnings are passed directly back to you in Bitcoin.

When it comes to growing your Bitcoin, the question shouldn’t only be “how much can I earn?” – but also “how are these gains being made,” and “how is the risk managed?”

A cautious approach to Bitcoin growth

At Xapo, we don’t chase trends or use risky strategies like DeFi, active trading, or speculative bets. Instead, your Bitcoin is managed through partnerships with well-established institutions that have proven financial strength and deep experience in digital asset management.

These partners are carefully vetted through strict due diligence, giving us the confidence to lend responsibly and sustainably.

Our process, step by step

1. Careful screening and monitoring Before lending any Bitcoin, we conduct comprehensive reviews of each partner’s creditworthiness, financial health, and risk management practices. Approved institutions are continuously monitored to ensure they meet our standards. So far, this approach has resulted in zero defaults, every borrower has repaid on time.

2. Diversification to reduce risk Your Bitcoin isn’t lent to a single borrower. It’s distributed across multiple qualified institutions and sectors to help reduce exposure and keep your risk balanced.

3. Short-term lending for better control We focus on shorter lending periods, typically a few weeks or months. This enables agile risk management and the ability to respond quickly to market shifts.

4. Selective participation We avoid unstable strategies and never compromise safety for higher returns. No leverage. No speculative bets.

5. Earnings paid in Bitcoin Your growth is measured in Bitcoin, not fiat. If you allocate 1 BTC and it grows by 4%, you’ll have 1.04 BTC, regardless of market pricing fluctuations.

A dedicated team of professionals oversees this process, aiming to achieve reliable, low-volatility growth while maintaining strict risk oversight.

Why this matters

This new Bitcoin growth solution gives Xapo Bank members access to a professional, transparent, and secure way to grow their Bitcoin, built using tools once reserved for large institutions.

By combining members’ Bitcoin, Xapo Bank can negotiate stronger terms with institutional partners, creating a smarter and safer way to pursue Bitcoin growth, all while maintaining complete transparency and disciplined risk management.

We're building the future of financial growth, giving your Bitcoin the opportunity to do more while staying completely yours.

Disclaimer

This article is for general information purposes only and is not intended to constitute legal or other professional advice or a recommendation of any kind whatsoever and should not be relied upon or treated as a substitute for specific advice relevant to particular circumstances. We make no warranties, representations or undertakings about any of the content of this article (including, without limitation, as to the quality, accuracy, completeness or fitness for any particular purpose of such content), or any content of any other material referred to or accessed by hyperlinks through this article. We make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up-to-date.

*In the United Kingdom, this material is restricted and directed only at Professional Clients or Eligible Counterparties. Terms and Conditions apply.

This article is for general information purposes only and is not intended
to constitute legal or other professional advice or a recommendation of any
kind whatsoever and should not be relied upon or treated as a substitute
for specific advice relevant to particular circumstances. We make no
warranties, representations or undertakings about any of the content of
this article (including, without limitation, as to the quality, accuracy,
completeness or fitness for any particular purpose of such content), or any
content of any other material referred to or accessed by hyperlinks through
this article. We make no representations, warranties or guarantees, whether
express or implied, that the content on our site is accurate, complete or
up-to-date.

Xapo’s services are exclusively offered from Gibraltar and regulated by the
Gibraltar Financial Services Commission. None of the services referred to
in our Website are available in any jurisdiction where such activity is
prohibited. Persons who are resident outside Gibraltar should consult their
professional advisers or local regulator to satisfy themselves of local
regulatory requirements.

You acknowledge that your arrival to and use of our Website and any of its
related mobile applications and other platforms and any requests for
information are wholly unsolicited and are entirely out of your own
initiative without prior direct communication from us.

*Crypto asset services are provided by Xapo Vasp Limited, a company
regulated by the Gibraltar Financial Services Commission as a ‘Distributed
Ledger Technology Provider’ under Permission No. 26061 and not by Xapo Bank
Limited. Xapo Bank Limited provides services exclusively in respect of fiat
balances. Crypto asset deposits are not covered by the Gibraltar Deposit
Guarantee Scheme.

*References to 'guaranteed', ‘protected’, ‘secure’ and similar terms in
this post in the context of crypto assets relate solely to the technical
and operational security features of Xapo Vasp Limited, and do not imply
any form of deposit protection, guarantee or regulatory safeguard. For
further details on the security features available, please visit:
https://www.xapobank.com/en/blog/banking-your-btc

*Capital at risk. This information is not investment advice. Crypto asset
values can go up as well as down and you could lose all the money you
invest. This is a high-risk investment and you are not protected if it
loses all or some of its value. Past performance is not indicative of
future results. Bitcoin deposits are not covered by the Gibraltar Deposit
Guarantee Scheme.

Xapo Byzantine BTC Credit Fund is referred to in this email as ‘BTC Credit
Fund’ and is incorporated as an exempted company with limited liability in
the Cayman Islands and is regulated as a mutual fund for the purposes of
the Mutual Funds Act (Revised) of the Cayman Islands under Ref No. 2135151.
The BTC Credit Fund is managed by its investment manager Hilbert Capital
Ltd., an exempted company incorporated under the Companies Act (Revised) of
the Cayman Islands and is exempt from the licensing requirements of the
Securities Investment Business Act (Revised) of the Cayman Islands in
respect of its services by virtue of having registered with the Cayman
Islands Monetary Authority (CIMA) under that law with Ref No. 1994742.

2–4% APY is a targeted return and represents a forward-looking projection,
not a guarantee. Actual returns may be higher or lower and can vary over
time. This product is an investment, not a savings account or deposit.
Capital at risk. Crypto asset values and investments in the BTC Credit Fund
can go up as well as down and you could lose all the money you invest. This
is a high‑risk investment and you are not protected if it loses all or some
of its value. Past performance is not indicative of future results. This
information is not investment advice.Bitcoin deposits are not covered by
the Gibraltar Deposit Guarantee Scheme. For more information on risks,
please see our Risk Disclosure.

The fund is only available to investors who meet certain eligibility criteria which may include, among other things, a minimum investment requirement and appropriateness assessment. T&Cs apply.