{"id":18178,"date":"2025-03-20T02:03:33","date_gmt":"2025-03-20T02:03:33","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=18178"},"modified":"2025-03-20T02:03:33","modified_gmt":"2025-03-20T02:03:33","slug":"bitcoin-backed-borrowing-gibraltar-bank-rolls-out-1-million-loans","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=18178","title":{"rendered":"Bitcoin-Backed Borrowing? Gibraltar Bank Rolls Out $1 Million Loans"},"content":{"rendered":"
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Xapo Bank announced a new loan service that lets customers use their Bitcoin as collateral<\/a>, marking another step in cryptocurrency\u2019s move toward mainstream financial services.<\/p>\n

The service allows qualified members to borrow up to $1 million against their Bitcoin holdings, though UK and Australian clients are excluded.<\/p>\n

Major Wall Street Firms Join Bitcoin Financing Race<\/h2>\n

Xapo Bank<\/a> has become known in the conventional banking sector as an early adopter. During the pandemic-driven BTC frenzy, it became one of the first banks to open a physical headquarters in Europe by settling in Gibraltar, a British overseas territory.<\/p>\n

Conventional financial powerhouses are entering the market as cryptocurrency becomes more popular in the United States. Renowned financial bank Cantor Fitzgerald has established a Bitcoin finance section on their own.<\/p>\n

According to sources, the company has partnered with crypto companies Anchorage Digital and Copper.co to help its expanding global Bitcoin operation.<\/a><\/p>\n

Last year, the bank received regulatory license in the UK and started providing interest-bearing BTC accounts in addition to standard banking services.<\/p>\n

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Xapo Bank Debuts Bitcoin Loans, Calls Out \u2018Predatory\u2019 Crypto Lenders<\/p>\n

The private bank\u2019s new service allows customers to access up to $1 million in Bitcoin-backed debt.
\nRead more: https:\/\/t.co\/rBhwnAHu7g<\/a> pic.twitter.com\/qPtcWOrDgA<\/a><\/p>\n

\u2014 Mars Signals (@MarsSignals) March 18, 2025<\/a><\/p>\n<\/blockquote>\n

Coinbase Revives Bitcoin-Backed Loans Through New Partnership<\/h2>\n

Coinbase previously offered digital currency-backed loans but stopped the service in 2023. The company has now restarted lending through a partnership with Morpho Labs, using decentralized lending protocols.<\/p>\n

Their current service allows US users (except those in New York) to borrow up to $100,000 in USDC stablecoins.<\/p>\n

<\/p>\n

Max Branzburg, Coinbase\u2019s vice president, stated that the product aims to improve the crypto\u2019s usefulness in a decentralized setting. The service streamlines borrowing by eliminating credit checks and fees, though borrowers must keep an eye on their collateral value to avoid liquidation.<\/p>\n

The new Coinbase service runs on Base, the company\u2019s Ethereum layer-2 network. When customers take out loans, their crypto collateral is automatically converted to Coinbase Wrapped Bitcoin (cbBTC), a token backed one-to-one by BTC held in Coinbase custody.<\/p>\n

\"\"<\/p>\n

Centralized Vs. Decentralized: Different Approaches To Crypto Lending<\/p>\n

While some services use decentralized finance (DeFi) protocols, Xapo represents a more traditional, centralized approach. Customers must first get approval from the bank, and their Bitcoin is stored \u201cin a vault until the loan is paid back,\u201d with loan terms extending up to one year.<\/p>\n

Seamus Rocca, CEO of Xapo, acknowledged that many long-term crypto holders became wary of crypto-backed lending after witnessing \u201cpredatory lending and faulty products\u201d in the market. \u201cThat\u2019s why we\u2019re doing things differently,\u201d he said.<\/p>\n

These services mostly help Bitcoin holders to acquire cash without selling their assets and generating taxable transactions.<\/p>\n

Featured image from Gemini Imagen, chart from TradingView<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Xapo Bank announced a new loan service that lets customers use their Bitcoin as collateral, marking another step in cryptocurrency\u2019s move toward mainstream financial services. The service allows qualified members to borrow up to $1 million against their Bitcoin holdings, though UK and Australian clients are excluded. Major Wall Street Firms Join Bitcoin Financing Race […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-18178","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/18178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18178"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/18178\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}