Xapo Bank is expanding access to its Bitcoin Credit Fund after the product attracted more than $100 million from members in its first phase. The fund lets people earn interest on their bitcoin through safe, regulated lending.

This move is part of Xapo’s long-term plan to build a secure and trusted system for bitcoin-based financial services. The BTC Credit Fund, first launched in 2024 with Hilbert Group, gives bitcoin holders a way to earn yield without selling their BTC.

Instead of risky lending or volatile DeFi platforms, Xapo uses a banking-style approach that focuses on safety and institutional lending. Xapo says the expansion of the fund has been slow but carefully planned.

When the bank partnered with Hilbert Group in 2024 to establish the fund, it said it anticipated receiving initial investment capital exceeding $200 million. After earning full regulatory approval in Gibraltar, Xapo is now opening the fund to more people.

CEO Seamus Rocca said:

The fund is also regulated in the Cayman Islands, adding another layer of oversight. Not everyone can join right away. People must meet certain requirements and pass due diligence checks.

Xapo says this helps keep the fund safe and prevents the kind of risky behavior that caused major digital asset lenders to fail in 2022.

2022 was a particularly hard year for digital asset lenders and users. Major platforms like 3 Arrows Capital, Genesis, BlockFi, and FTX went under in that year, creating one of the harshest environments for digital assets ever recorded.

Tommy Doyle, Global Head of Relationship Management at Xapo, said the fund is designed for long-term bitcoin holders, adding: “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.”

This shows that Xapo focuses on safety, not speculation.

The expansion comes at a time when bitcoin lending is slowly recovering. Today, lending is returning, but with more rules, more oversight, and much more caution. Companies like Coinbase Borrow, Ledn, and onchain lenders such as Aave are helping rebuild trust.

In the meantime, using bitcoin as collateral is becoming mainstream at a fast pace. For example, MetaPlanet, a Japanese company, has a $500 million credit facility backed by bitcoin.

JPMorgan, the American banking giant, also announced recently that the bank will offer loans backed by bitcoin soon.

This shows that borrowing against BTC remains a common strategy, and Xapo wants to serve the same kind of long-term, responsible users.

The BTC Credit Fund is part of a larger set of financial services offered by Xapo. These include bitcoin savings accounts, USD savings accounts, bitcoin-backed loans of up to $1 million, and stablecoin deposit tools.

The goal is to allow members to handle all their Bitcoin-related financial needs in one regulated environment, described as a “digital-wealth ecosystem”.