Xapo Bank, a private bank and Bitcoin custodian based in Gibraltar, has reported a significant surge in Bitcoin trading volumes during the first quarter of the year. The increase in trading volume, which amounted to a 14.2% growth compared to the previous quarter, was largely attributed to high-net-worth members actively buying Bitcoin during market turbulence.

Despite Bitcoin experiencing its worst start to a year since 2018 and closing the first quarter down by 13%, Xapo Bank's clients showed a strong commitment to the long-term potential of Bitcoin by capitalizing on the price drop to acquire more of the digital asset. This trend underscores the confidence that high-net-worth individuals have in Bitcoin's future growth prospects.

In an effort to provide innovative financial services, Xapo Bank became the first licensed bank to launch interest-bearing Bitcoin and fiat banking accounts in the UK in 2025. Additionally, in March of the same year, the bank introduced Bitcoin-backed USD loans of up to $1 million, further expanding its offerings to cater to the evolving needs of its clientele.

A self-selected poll conducted by Xapo Bank revealed that respondents favored using Bitcoin for savings and investment, highlighting the growing popularity of the digital asset as a store of value. The bank also noted a significant increase in euro deposits, with a 50% quarter-on-quarter jump, reflecting a growing interest in cryptocurrencies as traditional markets faced uncertainties.

Amidst concerns about the future of the US dollar and potential economic downturns, Xapo Bank observed shifts in stablecoin deposit patterns among its members. USDC deposits saw a notable increase of 19.8% in the first quarter, while Tether (USDT) deposits declined by 13.4%. These changes coincided with European cryptocurrency exchanges delisting Tether to comply with regulatory requirements.

Gadi Chait, Xapo Bank's head of investment, emphasized that despite short-term challenges, the fundamental strength of Bitcoin remains intact, and its long-term value proposition continues to attract investors. Chait highlighted that while global events may introduce volatility, the resilience and potential of Bitcoin as a digital asset remain compelling for long-term investors.

In a related development, Bitget, a digital currency exchange, also experienced a surge in trading volumes during the first quarter of 2025. The exchange reported a total trading volume of $2.1 trillion, with spot trading volume increasing by 159% quarter-on-quarter to $387 billion. Bitget's user base grew by nearly 20

Source: https://cointelegraph.com/news/xapo-bank-bitcoin-trading-surge-wealthy-members-bought-dip?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound