At a glance
- Customers want cash without selling bitcoin, income from holdings they keep, or more bitcoin through savings interest, Rocca said.
- Advisors whose clients hold bitcoin can compare the current terms: Xapo charges a $1,000 annual membership that bundles dollar banking with bitcoin custody, investments and borrowing.
- Some of the earliest adopters became more willing to take profits as bitcoin reached record prices, having seen gains evaporate in earlier downturns, Rocca said.
About 45% of Xapo's customers earn interest in bitcoin on their dollar balances, CEO Seamus Rocca told CoinDesk, as wealthy holders increasingly borrow against their coins instead of selling.
Customers want cash without selling bitcoin, income from holdings they keep, or more bitcoin through savings interest, Rocca said. "Customers are looking for yield and alpha," he said, citing demand from funds and family offices for products that accumulate and pay income.
Advisors whose clients hold bitcoin can compare the current terms: Xapo charges a $1,000 annual membership that bundles dollar banking with bitcoin custody, investments and borrowing. It advertises a 4.1% variable base rate on dollar savings paid in bitcoin, plus a temporary 4.6% introductory rate for eligible new members. A separate bitcoin credit fund targets annual returns of up to 4% through lending, exposing investors to credit and counterparty risk, according to CoinDesk. The fund's target sits below the 4.1% variable rate on dollar savings, though an advertised savings rate and a targeted lending return are different promises.
Some of the earliest adopters became more willing to take profits as bitcoin reached record prices, having seen gains evaporate in earlier downturns, Rocca said. Others, including investors who entered around 2018 and 2019, hold and prefer borrowing against their coins when they need liquidity. Profit-takers who sell often leave the proceeds in dollar savings and take interest in BTC, rebuilding their holdings while keeping cash.
Borrowing keeps a customer's exposure to further bitcoin gains, though it also leaves them exposed to price declines while carrying debt. Rocca said traditional banks increasingly acknowledge that clients want bitcoin exposure, and their interest in custody and investment products is a substantial change from the skepticism he met when he began working in crypto in 2016.
Xapo's advertised yields: 4.6% intro vs 4.1% base vs 4% fund target
Advertised variable savings rates against a targeted lending return — not the same promise
Show as table
| Label | Value (%) |
|---|---|
| Dollar savings base rate | 4.1% |
| Intro rate (eligible new members) | 4.6% |
| Bitcoin credit fund target | 4% |
Reported by the Adoption desk from CoinDesk — Policy & Institutions. Published . Corrections