You want to grow your holdings, but it seems like there are only two extremes: zero-yield safety or high-risk speculation. At Xapo Bank, we believe you shouldn't have to choose between keeping your Bitcoin safe and making it productive. For the serious Bitcoin holder, the most frustrating part of the last decade hasn't been the volatility. It’s been the idle time.
The BTC Credit Fund bridges that gap. It’s for the person who wants to finish the year with more Bitcoin than they started with, without high risk or too much effort.
How the BTC Credit Fund works
The fund simply takes the collective strength of our members' Bitcoin and lend it to serious, professional financial companies.
They pay a fee to use that Bitcoin, and the fund gives that return back to you. It’s a simple, unleveraged Bitcoin lending strategy that puts your assets to work, helping you accumulate more Bitcoin to suit your long-term financial plan.
7 benefits of the Xapo Credit Fund
1. Your wealth grows in Bitcoin, not dollars
Most interest-earning products pay you in your local currency or, in the crypto space, often in unstable tokens. We do things differently.
The BTC Credit Fund is a Bitcoin-in, Bitcoin-out fund. If you invest 1 BTC and the fund earns up to 4% interest, you finish the year with 1.04 BTC. This is native Bitcoin interest. By keeping your returns in Bitcoin, the fund makes sure your wealth is protected from conversion fees and the constant ups and downs of fiat money. In this fund, 1 BTC always equals 1 BTC.
2. You choose monthly income or compounding growth
We understand that different stages of wealth require different strategies. Currently, your Bitcoin payouts are automatically reinvested to maximise the power of compounding. However, we are soon introducing the ability to choose how you receive your earnings.
Whether you want to keep your returns within the fund to keep growing or have your earnings paid out monthly to provide steady, passive income, the choice will be yours. This flexibility allows you to treat your Bitcoin as a productive asset that can help fund your lifestyle without you ever needing to sell your principal.
3. Institutional-grade banking
Usually, the safest and most profitable lending deals are reserved for massive institutions and family offices. By pooling our members' Bitcoin, the fund gains the bargaining power to get you a seat at that table. You’re gaining private banking access that was previously invitation-only.
4. A conservative 'safety-first' strategy
The fund doesn’t use leverage to chase high returns and stays far away from experimental DeFi protocols or active trading. Instead, it uses a strict vetting process to lend only to established, creditworthy institutions like market makers and asset managers who have a track record of zero defaults.
Because the fund refuses to take unnecessary risks, returns (targeted at 4%) may be lower than what you see on some high-risk exchanges. But the trade-off is clear: the fund offers a sustainable way to grow your wealth with little risk to your principal. We believe it’s better to build a legacy steadily than to risk it all for a few extra percentage points.
5. Everything lives in one app
The entire fund—investing, tracking your growth, and requesting your Bitcoin back—is handled right inside the Xapo Bank app. It’s the security of a vault with the ease of a banking app. With no need for external wallets, brokers, or complex paperwork. As a Xapo Bank member, you benefit from our entire ecosystem.
6. There’s no ceiling on your growth
Have you ever noticed that most earn accounts cap your interest after a certain amount? That bottleneck doesn’t work for serious Bitcoin holders. Our fund has no maximum investment limit. Whether you are deploying a portion of your holdings or all of your wealth, every satoshi works with the same efficiency.
7. Agile risk management with short-term cycles
The fund doesn't lock your wealth into multi-year loans that you cannot get out of. It lends in short-term cycles (usually weeks or months). This lets the managers react to market conditions instantly. If a borrower looks a little shaky, we move on. It’s agile risk management that keeps your principal safe.
Beyond these perks, here is what makes this a smarter home for your wealth:
The power of choice: You don't have to put everything in one basket. You can keep your "just in case" money in an everyday banking account where you can spend it instantly and put your wealth-building funds in the Credit Fund (where it earns more but requires a 30-day notice). One is for today; the other is for tomorrow.
Zero effort fees: Our management fees are taken directly from the fund’s earnings, so there’s no need to set aside cash to cover them. You see the Net Asset Value (NAV) in your app, which is the 'real' value of your Bitcoin after all costs.
You might be wondering:
How does the fund generate yield on Bitcoin? The fund operates a fully institutional credit process. The fund lends your Bitcoin to well-capitalised, vetted financial institutions that pay a fee for the liquidity. After costs, that return is paid directly back to you in BTC. It’s a traditional banking model for the world’s most modern form of money
Is the fund safer than DeFi lending? Absolutely. DeFi relies on code that can be exploited. The fund relies on transparent crypto credit. We don't use experimental code; we use established law and rigorous counterparty due diligence, not just an algorithm.
Does the fund rehypothecate assets? In this specific BTC Credit Fund, your Bitcoin is lent to partners to earn you interest, but is never used to fund the bank’s own balance sheet.
What is the minimum investment for the Xapo BTC Credit Fund? To keep the service high-touch and professional, the fund starts at a minimum of USD 120,000 (in Bitcoin).
Your Bitcoin has always been secure with us. Now, let’s make it productive. Join the members who are no longer just holding, but actively building their legacy.
Xapo Bank is where generational Bitcoin wealth is built. We offer the safety of cold storage with the growth of a hedge fund, all in one regulated home.
