Xapo Reports 24% Jump in Bitcoin Loans, Surging Stablecoin Use in Emerging Markets

Xapo Bank recorded a 24% global increase in bitcoin-backed loan initiations during Q2 2025, with European members driving 72% of the total volume, according to its Digital Wealth Report released this week.

Xapo Q2: Bitcoin Loans Up 24%, Millennials Boost Crypto Holdings 10%

The Gibraltar-based bank Xapo noted members increasingly use bitcoin ( BTC) holdings as collateral for loans up to $1 million without liquidating assets. Loan durations varied: 47% were under 90 days, while 40% spanned one year. Latin America followed Europe in adoption.

The report further notes that millennial members (born 1981–1996) increased their crypto holdings by 10% since 2022. Generation Z membership (born 1997–2012) grew more than 14-fold in that period, though from a smaller base. Gen Z members showed more active trading behavior, Xapo’s findings show.

Bitcoin’s price climbed from $94,000 in April to over $120,000 by July. During this period, 60% of Xapo’s BTC trades were sells, primarily for profit-taking and liquidity optimization, not exits. Buying activity remained steady, the Xapo analysis explains.

Stablecoin inflows surged in emerging markets: up 40% in the Middle East, 25% in Africa and 12% in Asia-Pacific. Conversely, European inflows fell 25%, returning to baseline after a Q1 spike. USDC deposits grew 7.5% in Q2.

Xapo Bank CEO Seamus Rocca stated the data reflects bitcoin’s maturation into a “globally recognized financial asset” used strategically for borrowing and diversification. “This shift marks a departure from the speculative narrative that has long surrounded bitcoin,” Rocca remarked. “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.”

The Xapo executive added:

“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.”