Xapo Bank, a global cryptocurrency-friendly bank headquartered in Gibraltar, is betting on the revival of crypto lending in India by launching Bitcoin-backed US dollar loans. Qualifying Xapo Bank clients in India can now access Bitcoin (BTC) loans of up to $1 million. The new lending product is designed for long-term Bitcoin hodlers in India who want to access cash while keeping their BTC. Xapo Bank CEO Seamus Rocca highlighted that Bitcoin is an ideal form of collateral due to its borderless nature, high liquidity, availability 24/7, and divisibility. A key feature of Xapo’s Bitcoin loan product in India is that the bank does not rehypothecate the loan collateral by users, ensuring the security of BTC assets. The Bitcoin collateral is stored in Xapo’s BTC vault using institutional multiparty computation (MPC) custody. Eligible Xapo clients in India can choose repayment schedules of 30, 90, 180, or 365 days, with no penalties for early repayment. Xapo’s new Bitcoin lending offering in India will be available to pre-approved members based on criteria such as the amount and period of Bitcoin holdings, targeting long-term BTC holders with a strategic investment approach. Xapo Bank is regulated by the Gibraltar Financial Services Commission under the Financial Services Act 2019. This move by Xapo Bank in India comes after the crypto lending industry faced a crisis in 2022 following the collapses of major lending providers. Xapo aims to rebuild trust in the industry by offering secure and transparent solutions for Bitcoin-backed loans in India. With the rising demand for Bitcoin-backed loans in India, Xapo’s entry into the market is timely and strategic.