Bitcoin-backed loans The next step-CEO of Xapo Bank

Bitcoin holders have become more comfortable borrowing against their encryption with the growth of market confidence, according to Seamus Rocca, CEO of Xapo Bank, which is based in Gibraltar.

In an interview at the TOKEN2049 event in Dubai, Cointelegraph told Bitcoin (with Bitcoin (BTCIt is about $ 95,000 and institutional accreditation began to catch up, and the mood among investors from short -term speculation has turned into a long -term look.

“I am not sure that confidence would continue there three or four years ago,” Roca told CointeleGraph. “But today, people are more comfortable to borrow against Bitcoin because we are anywhere near the levels that will lead to liquidation.”

On March 18, Xapo Bank I launched a lending product This allows users to borrow US dollars using Bitcoin as a guarantee. With the product, qualified customers can reach up to $ 1 million of loans while keeping BTC.

Bitcoin’s loans are the next “clear” step

Cointelegraph told the long -term CRYPTO path to the product’s demand. This has been motivated by developments that lead to a broader institutional adoption.

Roca said: “The expectations are intended for institutional space, traded investment funds, and mood music on Bitcoin, revolve around the wider adoption and long -term thinking more than short -term speculation,” Roca said.

He said that this shift is the key to opening demand for borrowing against BTC, where investors feel more safety and feel that sharp prices are less likely.

XAPO Bank CEO said that his Bitcoin -backed loans offer loan to LTV rates by 20 %, 30 % and 40 %, giving borrowers flexibility while managing risk. “If you get a 20 % LTV loan and you have 100 bitcoins, as many first adopters do, this is still a million dollars you can borrow without the need to sell it,” said Roca.

With conservative LTV levels such as 20 %, Bitcoin should decrease to less than $ 40,000 for borrowers for a filter. “We are anywhere near $ 40,000,” Roca told Cointelegraph, noting the current price stability as a reason for marriage of the borrower’s confidence.

Related to: Blockchains is ready for institutions, lawyers are hesitant: CEO of Doublezero

Borrowing helps investors avoid sales in emergency situations

Roca said that baccalaureate loans provide a solution for holders who want to stay at BTC when facing unexpected life expenses. “If you follow the spirit of investment, the smart thing that must be done is not to sell it in three days if it reaches 100,000 dollars,” said Roca.

“But life is in the way,” Roca added. He told Cointelegraph that unexpected costs, such as medical bills or a car replacement, often force investors to liquidate assets at unfavorable times. Rocka said that instead of selling Bitcoin for $ 10,000 account, investors can borrow for their property while simply paying the loan.

He said: “You are still getting the budget capabilities to estimate the price of bitcoin because you did not sell it.” “But you get liquid to pay the price of things you need in daily life.”

With the deepening of institutional adoption and the maturity of the Bitcoin market, the Xapo Bank official is betting that more long -term holders will be ready to take advantage of encryption liquidity without selling BTC. This represents a transformation from “Hodl” culture to an era that Bitcoin owners can do more with the original.

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