Bitcoin’s wealthiest holders are increasingly using the cryptocurrency as a source of liquidity and income rather than treating it only as a trading asset, according to Seamus Rocca, chief executive of Xapo Bank. The change reflects a broader move toward private-banking services for people and institutions that already hold substantial amounts of bitcoin.
Rocca told CoinDesk that Xapo customers are borrowing against their bitcoin, placing money into income-generating products and using interest paid on dollar savings to accumulate more BTC. The Gibraltar-based bank serves clients including early bitcoin adopters, funds and family offices.
From speculation to financial services
Rocca said bitcoin was viewed mainly as a speculative and trading asset five or six years ago. The priorities of many holders have since changed. Instead of simply buying and selling based on price movements, they are looking for ways to preserve their exposure, generate income and obtain cash without liquidating their holdings.
Borrowing against bitcoin allows a customer to access funds while retaining ownership of the underlying asset. However, the arrangement still carries risk: the borrower remains exposed to a decline in bitcoin’s price and takes on debt at the same time.
Xapo developed from a bitcoin custody business associated with storage in a Swiss bunker. Its banking service combines dollar accounts with bitcoin custody, investment products and borrowing, and charges an annual membership fee of $1,000.
The company’s customers have lived through several bitcoin market cycles, including halvings, which are periodic reductions in the rate at which new bitcoin is issued. That experience has influenced how different groups manage their wealth.
Holders split between selling and accumulating
Rocca described two broad groups among Xapo’s bitcoin-rich customers. Some early adopters have become more willing to take profits after seeing previous gains disappear during market downturns. Others, including investors who entered the market around 2018 and 2019, remain committed to holding their coins and prefer borrowing when they need liquidity.
Selling does not necessarily mean that the first group has abandoned bitcoin. Some customers place sale proceeds in dollar savings accounts and receive interest in bitcoin, allowing them to keep cash while gradually rebuilding their BTC positions.
About 45% of Xapo customers use that feature, Rocca said. Xapo advertises a variable base rate of 4.1% on dollar savings, paid in bitcoin, and a temporary introductory rate of 4.6% for eligible new members. The bank also offers a separate bitcoin credit fund that targets annual returns of up to 4% through lending. That product involves credit and counterparty risk.
The common factor, according to Rocca, is an effort to make existing bitcoin wealth productive. He characterized the current cycle as being focused on yield, accumulation and income generation rather than purely on price speculation.
Traditional banks remain cautious
Rocca said established banks increasingly recognize that their clients want bitcoin exposure. Their willingness to consider custody and investment offerings marks a change from the skepticism he encountered when he entered the crypto industry in 2016.
Large banks nevertheless move slowly when introducing new services. Product approvals can require several internal committees, while employees may hesitate to sponsor activities viewed as risky. Political and regulatory uncertainty has added to that caution, with institutions seeking confidence that a more supportive environment will persist before committing significant resources.
Some traditional banks now offer investment products but have stopped short of allowing customers to directly manage bitcoin wealth or borrow against it. Rocca said this gap creates an opportunity for specialist providers such as Xapo. He also argued that caution can be beneficial because another failure caused by poorly managed crypto businesses could undermine confidence in the wider bitcoin market.
Market picture
Moneyiar market data recorded bitcoin at $80,430.5068 at 22:39 on October 25, 2026, Tehran time. The cryptocurrency was down 0.08% over 24 hours and 1.32% over seven days.
The price was lower than the $84,459.46 bitcoin level cited in the source material, underscoring that market values can change between reports and data snapshots. The figures in this section are Moneyiar data at the stated time and are separate from Xapo’s customer trends.
Institutional demand remains the next test
Rocca said bitcoin’s next growth phase will depend on more institutions making long-term allocations. In his view, some participation through exchange-traded funds has involved arbitrage strategies rather than a company deciding to hold bitcoin as part of its treasury assets.
He said the institutional cycle had been called too early and argued that lower geopolitical and regulatory uncertainty could help unlock additional allocations. Rocca also said bitcoin could reach $250,000 over the next two to three years, presenting that as his view rather than a certainty.
Xapo’s customers do not share one immediate market outlook. Some are buying because they believe the market has reached a bottom, while others are holding savings in dollars because they expect further declines and are earning interest in bitcoin. For Rocca, that disagreement still points to demand for services that help holders accumulate and manage bitcoin over several years.
