Xapo Bank: BTC loans used for long-term strategy, not just short-term cash

Gibraltar-based Xapo Bank has stated that BTC-collateralized loans are increasingly being used as part of a long-term financial strategy, moving beyond their role as a tool for short-term liquidity. In its 2025 Digital Asset Report, the bank noted that half of all BTC-backed loans have a one-year maturity, and a significant number of these loans remain active even after the pace of new loan issuance has slowed. This reflects a strong tendency among users to maintain long-term exposure by leveraging their BTC for liquidity rather than selling it. The bank also explained that while many long-term investors are realizing profits, the general preference is to hold assets instead of selling during periods of market volatility.