What are Xapo Bank's Bitcoin-backed loans?

How much cash can I borrow with a Bitcoin loan?

You can borrow up to 40% of the value of your Bitcoin collateral, with a maximum loan amount of USD 1,000,000 per loan. This means if you have Bitcoin worth USD 100,000, you can borrow up to USD 40,000 (40% of USD 100,000).

What is the interest rate for a Bitcoin-backed loan?

The interest rate for our Bitcoin loans is variable and may be adjusted daily, based on the base rates set by the Federal Reserve Bank of New York. Members don’t lock in their interest rates; instead, they take the loan at the current variable rate available at the time. This rate can be updated daily, and interest accrues based on the rate in effect each day. 

What is the maximum loan term?

When requesting a loan, you can choose a term of 30, 90, 180, or 365 days. No matter which duration you select, you have the flexibility to set your repayment schedule and decide on the amounts that work best for you.

How do I apply for a Bitcoin-backed Loan?

Currently, you cannot apply for a Bitcoin-backed loan. We offer these loans to a select group of members on an invite-only basis based on their Bitcoin balance held at Xapo Bank. If you are chosen, we will notify you directly. If you still wish to get access, please reach out to your Account Manager to talk about your specific situation.

How many loans can I have at the same time?

Please note that Xapo Bank members can only have one active loan at a time.

How can I decrease my LTV?

To decrease your Loan-to-Value (LTV) ratio:

1. Add Bitcoin as Collateral:

• Open the Xapo Bank app

• Tap on Loan

• Select Add Collateral and follow the prompts.

2. Partially Repay the Loan:

• By repaying part of the loan, you reduce the outstanding balance, which lowers your LTV ratio.

If your loan becomes unhealthy and you receive a margin call, adding more Bitcoin to your collateral will decrease your LTV and help you avoid liquidation.

Can I extend my Bitcoin-backed loan beyond the original term?

Yes, you can extend your Bitcoin-backed loan, but only once and for loans with a healthy Loan-To-Value ratio of 45% or less. You can do this directly from the app, where you’ll see the option to extend your loan before it reaches the due date.

I've taken my loan but need to borrow more. How can I do it?

You can upsize your Bitcoin-backed loan once by adding more BTC as collateral. This option is available directly in the app—just navigate to your active loan and select the "Upsize" option.

*Currently, residents of the United Kingdom and Australia do not have access to Bitcoin-backed loans.