Xapo CEO Says Wealthy Bitcoin Holders Increasingly Use Loans and Yield Products

WHY IT MATTERS

When people first buy Bitcoin, many simply hold it in a wallet and wait, hoping its value increases over time. This is sometimes called "HODLing" in crypto culture. But according to Xapo's CEO, wealthier holders are now doing something different — they are lending out their Bitcoin or putting it into products that pay them a return, similar to how someone might put money in a savings account to earn interest. "Yield" is the term for the return or income you earn on an investment. This shift matters because it shows how some people are starting to treat Bitcoin less like a speculative bet and more like a traditional financial asset. However, earning yield on crypto comes with risks — if the borrower or platform fails, holders could lose their assets, as has happened with several crypto lending companies in the past.