As Bitcoin solidifies its place in the financial world, more investors are becoming comfortable using their crypto as collateral for loans, according to Seamus Rocca, CEO of Gibraltar-based Xapo Bank.
Speaking at Token2049 in Dubai, Rocca explained that with Bitcoin trading around $95,000 and institutional interest continuing to rise, the mindset of many holders has evolved from quick profits to long-term value.
“A few years back, I don’t think people would’ve felt secure enough to take loans against their Bitcoin,” Rocca noted. “But now, with stronger market resilience and reduced volatility risk, the confidence is definitely there.”
On March 18, Xapo Bank introduced a lending feature allowing customers to take out U.S. dollar loans secured by their Bitcoin. Eligible users can borrow up to $1 million without needing to part with their crypto.
A Natural Evolution for Bitcoin Finance
Rocca views this lending service as a logical development in crypto’s growth. As institutional frameworks like ETFs continue to gain traction, he said the focus is shifting away from day-trading and toward longer-term adoption.
“The narrative is changing — it’s no longer just speculative buzz,” Rocca said. “People are preparing for broader integration and thinking about how to use Bitcoin more strategically.”
Xapo’s loan offerings come with flexible loan-to-value (LTV) options — 20%, 30%, and 40% — designed to minimize risk while giving users access to capital. Rocca gave an example: “Someone with 100 BTC and a 20% LTV could unlock several million dollars, and still keep their coins.”
At these conservative borrowing levels, Bitcoin would need to drop under $40,000 for margin calls to be triggered. “We’re a long way off from that,” Rocca added, highlighting why more investors now feel comfortable leveraging their assets.
Access to Funds Without Selling Bitcoin
Rocca emphasized that this model offers a practical solution for long-term holders who may need liquidity without wanting to sell their crypto — especially during unexpected financial pressures.
“Let’s say Bitcoin hits $100,000 — the wise approach isn’t to dump your holdings over a short-term need,” he said. “But real life doesn’t always wait — emergencies, car issues, health bills — they come up.”
In these cases, Rocca explained, borrowing against Bitcoin allows users to meet immediate expenses while maintaining their investment position. “You’re still exposed to potential price gains, but you have access to funds when you need them.”
With institutional players entering the space and Bitcoin’s ecosystem becoming more robust, Rocca believes that this kind of financial product will appeal to an increasing number of long-term crypto holders. It marks a shift from simply “holding” to leveraging Bitcoin more effectively in everyday finance.
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