NEWSLETTER
A new loan product of Xapo Bank It allows qualified members to access USD loans using their bitcoin holdings as a guarantee. This allows bitcoin holders to take advantage of the fiduciary value of their assets without having to sell.
Xapo Bank, a license bank focused on bitcoin services, launched loans backed by bitcoin this week. Eligible members can now receive loans up to $ 1,000,000 insured against their bitcoin.
Once approved, loan funds are instantly deposited in the member's bank account. The corresponding bitcoin remains in safe storage by Xapo until reimbursement. This allows members to retain their long -term bitcoin while borrowing against their current value.
Members can select flexible refund terms from 30 days to 1 year. There are no early reimbursement rates or penalties, which gives borrowers control over minimized costs.
According to the CEO of Xapo Bank, Seamus Rocca, the product addresses the need for solutions responsible for bitcoin and cryptography loans. Many bitcoin holders have previously faced the loss of high -risk loan platform assets.
Xapo states that their loans supported by bitcoin have more conservative proportions of loans at value of 20% to 40% to protect members' assets. Automated controls on reimbursement and health monitoring of loans further reduce risks compared to other cryptographic loan products.
The launch occurs when bitcoin holders are increasingly looking for access to the value of their holdings without assets. bitcoin's sale to meet short -term financing needs can cause an advantage in the lost future.
However, experts urge caution by taking advantage of bitcoin holdings, since price decreases could trigger collateral liquidations if loans are sub -anganized. Exhaustive due diligence is recommended in the practices and risks of the lender.
