Bitcoin News Today: Xapo Bank Sees 24% Global Surge in Bitcoin-Backed Loans Driven by Europe

Xapo Bank, a Gibraltar-based financial institution, reported a 24% global increase in bitcoin-backed loan initiations during the second quarter of 2025. This surge was primarily driven by European members, who accounted for 72% of the total volume. The bank noted a growing trend among its members to use their bitcoin holdings as collateral for loans, with amounts ranging up to $1 million, without the need to liquidate their assets. The loan durations varied, with 47% of loans being under 90 days and 40% spanning one year. Following Europe, Latin America showed significant adoption of this trend.

Millennial members, born between 1981 and 1996, increased their crypto holdings by 10% since 2022. Generation Z membership, born between 1997 and 2012, grew more than 14-fold during the same period, although from a smaller base. Generation Z members exhibited more active trading behavior, according to Xapo’s findings. Bitcoin’s price climbed from $94,000 in April to over $120,000 by July. During this period, 60% of Xapo’s BTC trades were sells, primarily for profit-taking and liquidity optimization, rather than exits. Buying activity remained steady, as indicated by Xapo’s analysis.

Stablecoin inflows surged in emerging markets, with a 40% increase in the Middle East, a 25% increase in Africa, and a 12% increase in the Asia-Pacific region. Conversely, European inflows fell by 25%, returning to baseline after a spike in the first quarter. USDC deposits grew by 7.5% in the second quarter. Xapo Bank CEO Seamus Rocca stated that the data reflects bitcoin’s maturation into a “globally recognized financial asset” used strategically for borrowing and diversification. “This shift marks a departure from the speculative narrative that has long surrounded bitcoin,” Rocca remarked. “Whether you’re looking at institutional flows or retail behavior, the message is the same: conviction in bitcoin’s long-term value is holding firm – and growing.”

The Xapo executive added, “We’re seeing members use bitcoin strategically – not just as a store of value, but as a tool for borrowing, diversification, and navigating market conditions. This is a natural evolution as bitcoin matures into a globally recognized financial asset.”

Xapo’s report highlights the growing trend of using digital assets for financial services, with a significant increase in Bitcoin loans and stablecoin use in emerging markets. This trend is driven by the growing trust in digital currencies, the ease of access to Bitcoin loans, and the potential for higher returns compared to traditional loans. The surge in stablecoin use in emerging markets underscores their role in providing financial stability and security in regions with volatile currencies. This trend is likely to continue as more individuals and businesses recognize the benefits of using Bitcoin and other cryptocurrencies for loans and other financial transactions.

The increasing use of Bitcoin loans and stablecoins in emerging markets is a positive development for the digital asset industry. It demonstrates the potential of cryptocurrencies to disrupt traditional financial systems and provide innovative solutions to long-standing financial challenges. As the adoption of digital assets continues to grow, it is likely that we will see further innovation and development in the sector, with new use cases and applications emerging to meet the evolving needs of users.