Why did the yield on BTC savings decrease?

BTC Savings was created to be a starting point. The rate is lower because it’s designed to give you steady, long-term growth without putting your Bitcoin at risk. We know many of you are looking for ways to do more with your holdings, which is why we’re getting ready to introduce a new investment product with much higher targeted returns.

Why are you keeping the BTC Savings cap and reducing the yield after previously saying the cap would be removed?

In 2024, we shared our intention to remove the 5 BTC cap on BTC Savings. At the time, we were still exploring how to offer more meaningful returns. BTC Savings has always been funded by Xapo Bank’s own reserves, with your Bitcoin remaining untouched. It was designed as a starting point and a simple way to begin earning on your holdings.

Now, we’re introducing the BTC Credit Fund. It allows you to invest your own Bitcoin into a professionally managed fund through carefully managed lending strategies. The fund targets higher returns and offers a more advanced way to grow your Bitcoin than BTC Savings was ever meant to provide.

Will the BTC Savings yield continue to shift, and is this yield variable?

Yes, the BTC Savings yield is variable and may change over time. As this feature is risk-free and your Bitcoin remains untouched, the yield will typically stay within the 0.1% to 0.5% range.

If you are looking for higher return opportunities, the upcoming BTC Credit Fund will provide an option that targets more competitive yields by actively deploying Bitcoin through structured investment strategies.

How do you generate the 0.5% BTC Savings yield?

Xapo Bank subsidises the BTC Savings yield. We use our own reserves to generate returns and share a portion of that yield with you. Your Bitcoin remains untouched throughout the process.

Is the BTC Savings product being closed?

No, BTC Savings is not being closed. It will continue to offer interest, although at a lower rate, given that it remains a risk-free product in which your Bitcoin is never touched.

BTC Savings remains a simple way to start growing your Bitcoin. For those looking to take the next step and earn more, the upcoming BTC Credit Fund will offer a more advanced investment opportunity with higher return potential.

Is Xapo Bank in financial trouble, given that the BTC Savings yield is being reduced?

No, Xapo Bank is not in financial trouble. The change to the BTC Savings yield reflects a shift in how we’re helping members grow their Bitcoin.

BTC Savings was designed as a simple way to start earning on your Bitcoin. The BTC Credit Fund is the next step, giving you the option to invest your Bitcoin into a professionally managed fund with higher return potential. It’s a more advanced way to grow your holdings and build on what BTC Savings started.

Can I expect any additional benefits or features to make up for the reduced yield?

Yes. The upcoming BTC Credit Fund is being introduced as the next step for members who want to earn more on their Bitcoin.

It’s designed to offer significantly higher return potential than BTC Savings, with targeted annual growth of up to 5% APY*. You invest your own Bitcoin into the fund, which is professionally managed and uses risk-adjusted strategies to help grow your holdings. To get started, a minimum investment of USD 100,000 in Bitcoin is required.