Wealthy Bitcoin Holders Shift to Borrowing Against BTC Instead of Selling

High-net-worth Bitcoin investors are increasingly pledging their holdings as collateral to borrow cash or earn interest in BTC rather than selling. Xapo Bank CEO Seamus Rocca says clients now treat Bitcoin as a productive asset that can generate ongoing returns.

Roughly 45 % of the bank’s clients already earn interest paid in Bitcoin on their dollar deposits. The base rate stands at 4.1 %, with a temporary boost to 4.6 % for qualifying new customers. A dedicated Bitcoin lending fund targets up to 4 % annual yield.

Two distinct groups have emerged. Early buyers often lock in gains, while those who entered in 2018–2019 use collateral to stay invested and access liquidity. Sharp price drops, however, can trigger margin calls or forced liquidation.

Based on information from cryptonews.net