Summary
- Xapo Bank announced it will expand the Bitcoin (BTC) yield-generating loan product, which had been limited to institutions, to retail customers.
- The product has a structure of paying interest when BTC is deposited, and it said it broadened the service due to increased customer demand and market expansion.
- The product was evaluated as an example of increasing asset utilization and applying a structure similar to traditional finance's deposit and loan products to the virtual asset market.
Gibraltar-based virtual asset (cryptocurrency) bank Xapo Bank will expand a Bitcoin (BTC) yield-generating loan product that had been limited to institutions to retail customers.
On the 26th (local time), according to crypto-focused media The Block, Xapo Bank said it will open the 'Xapo Byzantine BTC Credit Fund' to retail customers. The product, launched last year, has a structure whereby if BTC is deposited, Xapo Bank lends it out and pays interest.
Previously offered mainly to institutions and high-net-worth individuals, the service was expanded to retail customers due to increased customer demand and market expansion. Xapo Bank said, "User interest in BTC-based yield products is steadily increasing," and "we are expanding the scope of services based on a secure lending structure and regulatory compliance framework."
The fund is seen as a case of increasing the asset utility of BTC holders and applying a structure similar to deposit and loan products offered by the traditional financial sector to the virtual asset market.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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