Xapo Bank is broadening access to its yield-bearing Bitcoin credit fund, a move that signals growing institutional appetite for Bitcoin-backed financial products.
The Xapo Byzantine BTC Credit Fund, first launched in 2024, has now attracted $100 million in member allocations during its initial phase, the company announced.
Details on the bitcoin credit fund
This fund operates through a partnership with Hilbert Group, which acts as the independent investment manager.
Deposited bitcoin is deployed via a “fully institutional credit process,” with lending decisions overseen by Hilbert Capital’s investment committee.
The fund aims to provide a “Bitcoin-native” alternative to traditional savings, earning interest by lending to counterparties.
Tommy Doyle, global head of relationship management at Xapo Bank, said:
“The Xapo BTC Credit Fund fits nicely into our suite of BTC wealth products in delivering consistent yield, with a limited low risk appetite, for our long-term BTC holders.”
Xapo’s expanding bitcoin services
Founded in 2013, Xapo Bank has developed a reputation as a bitcoin custodian and was the first bank in the UK to enable interest-bearing bitcoin and fiat accounts.
Earlier this year, it began offering bitcoin-backed U.S. dollar loans of up to $1 million.
The BTC Credit Fund is incorporated in the Cayman Islands and regulated as a mutual fund, while Xapo Bank Limited is overseen by the Gibraltar Financial Services Commission.
Risk controls and eligibility requirements
Xapo emphasized that exposures are continuously monitored to stay within the fund’s defined risk framework.
The fund is open only to eligible lenders, subject to minimum investment thresholds and due diligence assessments.
Rebound in bitcoin-backed lending
The launch comes as the bitcoin credit ecosystem is recovering from the collapse of major lenders in 2022.
Newer products, such as Coinbase Borrow and centralized lenders like Ledn, are restoring confidence.
Large holders—such as MetaPlanet, which uses a $500 million credit facility to acquire more bitcoin—frequently borrow against their holdings.
