A key distinction of Xapo’s Bitcoin loan product is that the bank does not rehypothecate the loan collateral by users, meaning that its lending mechanism does not involve the re-usage of BTC assets by clients.

Xapo Bank emphasized that their loans are geared towards Bitcoin holders who want to access cash for purchases or investments like property without selling Bitcoin, contrasting it with crypto exchange loans aimed at leveraged trading that can increase risk and turn investing into gambling