Xapo Bank CEO: Wealthy Bitcoin Holders Borrow Against BTC Instead of Selling
- —Xapo pays 4.1% on dollar savings in bitcoin, up to 4.6% for eligible new clients
- —A separate bitcoin credit fund targets up to 4% annual yield from lending
- —45% of Xapo clients take interest on dollar deposits in BTC
- —Risks include liquidation in a sharp price drop and borrowing costs
Why it matters: Collateralized BTC lending reduces sell pressure on the market but raises the risk of forced liquidations during sharp price declines.
Source: Bitcoin Sistemi