Xapo Members Increase Bitcoin-Backed Loans Amid Market Volatility
- Active Bitcoin-backed loans grew by 8.9% in Q1 2026.
- 53.9% of loans shifted to long-term, 365-day structures.
- Gen X and Millennials control a combined total of 76% of Xapo’s assets under management (AUM).
- 60% of bitcoin holdings were pledged as collateral by members with active loans.
- 78.4% of members increased their bitcoin exposure with strategic transactions.
In the first quarter of the year, high-net-worth individuals showed a preference for borrowing against their Bitcoin holdings rather than selling during volatile market conditions, reflecting a shift towards viewing Bitcoin as a foundational wealth asset.
The institutionalization of Bitcoin-backed borrowing is evident as more than half the loans issued are now long-term, underscoring confidence in using Bitcoin as collateral without losing market position or triggering tax events.( Source)
