Xapo Bank Reports 14.2% Increase in Bitcoin Trading Volume in Q1 2025

Gibraltar-based Xapo Bank has reported a 14.2% increase in Bitcoin trading volume during the first quarter of 2025 compared to the previous quarter.

Gibraltar-based Xapo Bank has reported a 14.2% rise in Bitcoin trading volume during the first quarter of 2025 compared to the previous quarter.

This growth occurred despite Bitcoin experiencing its worst start to a year since 2018, closing Q1 down 13%.

However, high-net-worth clients of Xapo Bank were actively “buying the dip” during the market downturn, according to the bank.

This purchasing pattern indicates that members are focused on Bitcoin’s long-term potential rather than short-term price volatility, as the institution noted.

Earlier this year, Xapo Bank became the first licensed bank to launch interest-bearing Bitcoin and fiat banking accounts in the UK.

The institution also introduced Bitcoin-backed USD loans of up to $1 million in March 2025, expanding its crypto-friendly service offerings.

Shifting Deposit Patterns

The first quarter also saw a 50% jump in euro deposits at Xapo Bank compared to the previous quarter.

The bank ties this rapid increase to mounting concerns about US dollar stability and recession fears as markets prepared for former President Trump’s planned “Liberation Day” in April.

Stablecoin deposit patterns showed clear shifts during this period. USDC deposits rose by 19.8% in Q1 compared to Q4 2024. Conversely, Tether (USDT) deposits decreased by 13.4% during the same timeframe.

This change in stablecoin preferences comes as European cryptocurrency exchanges began delisting Tether to comply with Markets in Crypto-Assets Regulation (MiCAR). Tether also withdrew its euro-backed stablecoin during this period.

Xapo Bank is positioning itself to fill a market gap, noting that fewer than 20% of European banks currently provide crypto services. Their approach combines cryptocurrency options within a traditional banking environment.

Industry-Wide Trading Growth

The increase in trading activity is evident in a different report by cryptocurrency exchange Bitget, which also announced surging volumes in its Q1 2025 Transparency Report.

Bitget’s total trading volume reached $2.1 trillion in the first quarter. Spot trading volume experienced a dramatic increase of 159% quarter-on-quarter, reaching $387 billion.

The exchange also added 4.89 million users to its centralized platform and 15 million users to its Bitget Wallet app during Q1, boosting its total global user count to over 120 million.

In February, Bitget engaged in industry cooperation by loaning rival exchange Bybit 40,000 ETH, valued at approximately $100 million. This loan, provided without interest or collateral, helped Bybit recover from a major hack.

The loan has since been fully repaid, with Bitget CEO Gracy Chen stating it was “simply about supporting a peer in the industry who was in need.”

Gadi Chait, head of investment at Xapo Bank, highlighted that short-term market turbulence doesn’t diminish Bitcoin’s significance.

“While global events painted an erratic picture, the opportunity for Bitcoin has always been in its long-term performance, not its short-term volatility,” Chait said.

A self-conducted poll by Xapo Bank on X showed that respondents primarily use Bitcoin for savings and investment purposes, aligning with the bank’s perspective on Bitcoin as a long-term asset.

If you could spend Bitcoin anywhere, what would be your first purchase?

— Xapo Bank (@xapobankapp) March 11, 2025

Bitget’s CEO mentioned that the exchange will continue focusing on developing institutional-grade infrastructure and expanding its Web3 presence through its ecosystem of products.

Despite market volatility and regulatory changes affecting certain cryptocurrencies, the data from both Xapo Bank and Bitget highlights ongoing strong interest in crypto trading and investment, especially among clients who view Bitcoin as a valuable long-term asset.