Xapo Bank, the Gibraltar-licensed private bank that bridges traditional banking with Bitcoin, has now fully rolled out its Bitcoin-denominated yield product to all eligible members. The move follows a successful early-access phase for the ‘Xapo BTC Credit Fund’, which attracted $100million in member allocations.
The fund is designed to allow long-term Bitcoin holders to earn a yield on their assets by participating in institutional-grade credit markets. Unlike many yield products in the crypto sector that have historically relied on opaque strategies or high-risk DeFi protocols, Xapo’s offering is structured within a fully regulated framework, aiming to provide a secure and transparent alternative for wealth generation.
Bridging the gap between banking and Bitcoin
The launch represents the next step in Xapo Bank’s strategy to build a comprehensive digital wealth ecosystem. The product sits alongside the bank’s existing suite of services, which includes USD and Bitcoin savings accounts and Bitcoin-backed lending.
The rollout is the culmination of a multi-year development programme. First unveiled in 2024 through a strategic partnership with Hilbert Group, the offering initially received investment in excess of $200million from Xapo Bank and other investors. Earlier this year, the bank secured full regulatory approval in Gibraltar for the product, a critical milestone that validated its compliance and oversight standards.
Seamus Rocca, CEO of Xapo Bank, commented: “The launch of our latest earnings product marks another milestone in our vision to build a complete digital-wealth ecosystem for Bitcoin holders. From loans to savings access, we’ve taken a phased approach to offering members more ways to grow and manage their Bitcoin within a secure banking framework. Opening this offering to all eligible members demonstrates the maturity of that journey, and the sustained demand we continue to see from those looking for long-term, institutional-grade opportunities.”
Institutional-grade yield ‘by design’
The Xapo BTC Credit Fund operates on a principle of “security first, yield by design.” It deploys member Bitcoin into a diversified portfolio of loans to well-capitalised counterparties.
Crucially, the strategy avoids fund-level leverage and focuses on short-term lending with a low-risk appetite. Lending decisions are overseen by the investment committee of Hilbert Capital, the fund’s independent investment manager, ensuring rigorous due diligence and continuous monitoring of exposures.
This structure is intended to offer consistent, risk-adjusted returns, appealing specifically to investors who want to put their Bitcoin to work without exposing themselves to the volatility often associated with the broader crypto lending market.
Tommy Doyle, global head of relationship management at Xapo Bank, said: “Our members choose Xapo Bank as we are the pioneers of Bitcoin denominated wealth and savings products, with a trusted reputation of protecting our client’s bitcoin, without compromise, since 2013. No other bank or platform has been as disciplined and unwavering in their commitment to provide banking services for ‘bitcoiners’. The Xapo BTC Credit Fund fits nicely into our suite of BTC wealth products in delivering consistent yield, with a limited low risk appetite, for our long term BTC holders.”
A unified wealth ecosystem
By opening the fund to a wider audience, Xapo Bank is effectively unlocking a new tier of wealth management for its users. The product complements the bank’s Bitcoin savings account, which provides a foundation of liquidity, and its Bitcoin-backed loan offering, which allows users to access cash without selling their holdings.
Together, these products allow members to manage liquidity, growth, and diversification within a single, regulated ecosystem. This holistic approach reflects the bank’s ambition to normalise the use of Bitcoin in everyday finance, combining the innovation of digital assets with the safeguards of traditional banking.