Xapo Bank has seen a sharp rise in strategic Bitcoin usage and digital asset engagement across its global membership, as revealed in the Q2 edition of the Xapo Bank Digital Wealth Report. The quarter saw a 24% increase in Bitcoin-backed loan initiations, a notable uptick in Millennial bitcoin holdings, and a regional shift in stablecoin inflows toward emerging markets.
Published quarterly, the Xapo Bank Digital Wealth Report draws on proprietary insights from one of the world’s first Bitcoin-enabled private banks. The Q2 report highlights a growing trend: members are not just holding digital assets, but actively leveraging them to preserve wealth, access liquidity, and respond to macro conditions with long-term conviction.
Bitcoin-Backed Borrowing Gains Ground
Following its Q1 launch, Xapo’s Bitcoin-backed lending product saw a 24% increase in loan initiations during Q2. Members are increasingly using their BTC holdings as collateral to unlock liquidity, not by liquidating assets, but by leveraging them strategically.
Qualifying members can borrow up to $1,000,000 via the Xapo Bank app, with repayment terms designed to preserve long-term Bitcoin exposure. European-based members led adoption, accounting for 72% of total loan volume, followed by strong uptake in Latin America.
Loan duration data revealed a split in borrower behaviour: 47% of loans were under 90 days, while 40% were taken out for one year, underscoring both the flexibility of the product and the diverse needs of members.
Millennials and Long-term users Take the Lead
Since 2022, the holdings of Millennial (born 1981 to 1996) members at Xapo Bank have grown by 10%, as the cohort has become a key player in Bitcoin adoption. Looking to the youngest generation of members, while Gen Z (born 1997 to 2012) currently represents a smaller portion of the overall member base, their presence is growing, having increased by more than 14-fold between Q1 2022 and last quarter.
As a younger group, they are earlier in their wealth-building journeys, but already showing a more dynamic investment approach: Gen Z Xapo Bank members are more likely to adjust their holdings frequently and respond to market trends in real-time.
Bitcoin Responds to Opportunity, not Panic
Bitcoin’s price rose steadily through the quarter, climbing from $94,000 in April to above $120,000 by July1, amid broader market volatility. Xapo Bank members didn’t retreat – they rebalanced. Trading activity in Q2 was driven by strategic responses to price growth: while 60% of BTC trades were sell orders, these were driven by profit-taking and liquidity optimisation, not exit strategies. Buying activity also remained relatively consistent, highlighting continued confidence in Bitcoin’s long-term role.
According to Xapo member data, regional BTC holdings remained broadly stable overall. Both the Asia Pacific and the Middle East increased their share in Q2, with the Asia Pacific doubling to 6% and the Middle East rising to 3% since Q1, reinforcing Bitcoin’s role as a globally distributed and widely held asset.
Commenting on the findings of the report, Seamus Rocca, CEO at Xapo Bank, said: “This shift marks a departure from the speculative narrative that has long surrounded Bitcoin. Whether you’re looking at institutional flows or retail behavior, the message is the same: conviction in Bitcoin’s long-term value is holding firm – and growing. We’re seeing members use Bitcoin strategically – not just as a store of value, but as a tool for borrowing, diversification, and navigating market conditions. This is a natural evolution as Bitcoin matures into a globally recognised financial asset.”
Stablecoins Go Global, with Eastward Shift
Xapo saw strong momentum in stablecoin usage in most markets, with inflows rising 40% in the Middle East, 25% in Africa, and 12% in Asia Pacific. In contrast, stablecoin inflows in Europe fell by 25%, returning to baseline after a Q1 spike.
Elsewhere, USDC deposits continued their upward trajectory, growing 7.5% in Q2 after a nearly 20% increase in Q1. These shifts point to growing trust in stablecoins as practical tools for on- and off-ramps, as well as cross-border payments.