Summary
- Galaxy introduced the GalaxyOne Crypto Portfolio Line of Credit (PLOC) on August 25 for qualifying clients in the U.S.
- This revolving credit line features no origination fees and a variable APR of 8.99%, with a loan-to-value ratio of 50%.
- Available in 40 states, the company assures that pledged BTC, ETH, and SOL are not rehypothecated.
On Tuesday, Galaxy unveiled its retail crypto-backed credit lines. Clients eligible on the GalaxyOne platform can now secure cash loans using Bitcoin, Ethereum, and Solana—staked SOL is also included—without needing to sell their assets.
The newly launched Crypto Portfolio Line of Credit (PLOC) allows users to collateralize BTC, ETH, and SOL within a single revolving credit line, avoiding the necessity of separate loans for each cryptocurrency. The company has set the variable annual percentage rate at 8.99% alongside a 50% loan-to-value ratio: a $100,000 collateral can facilitate borrowing up to $50,000.
Myriad: What's next for Ethereum's price? Make your prediction here.GalaxyOne monitors collateral values continuously, providing warnings if the value of the assets declines before any collateral actions are taken. Typically, draws are funded instantly, and users can utilize the cash on the platform or withdraw it in USD or USDC stablecoins.
Importantly, the pledged cryptocurrencies are not rehypothecated; Galaxy does not lend them out or reuse them while they serve as collateral. Additionally, staked SOL continues to earn rewards without the need to unstake.
“We’re thrilled to introduce a competitive crypto-backed borrowing solution through our expanding retail platform,” stated Zac Prince, Managing Director of GalaxyOne. “By leveraging Galaxy’s institutional infrastructure, we can provide competitive rates, security, and flexibility with our new crypto portfolio line of credit.”
Reviving Retail Lending After Previous Setbacks
The 2022 failures of Celsius, BlockFi, and Voyager still cast a long shadow over the lending sector. These platforms froze customer funds and enforced liquidations during market downturns, leading to widespread contagion across the crypto landscape.
In contrast, Galaxy's model operates on its own regulated platform rather than relying on external DeFi protocols, ensuring that pledged collateral remains intact instead of being rehypothecated.
Myriad: What’s Solana’s next price move? Share your prediction.Market sentiment has shifted since those turbulent times. Recently, crypto markets have seen a surge in optimism, flipping to "extreme greed" for the first time since 2024. There is a growing demand across the sector, evidenced by Bitcoin and Ethereum ETFs attracting $23 billion in just one week.
This might be an opportune moment for a revival in “crypto lending,” now with additional safety measures in place. Galaxy is reintroducing retail borrowing against crypto within a regulated framework, filling a gap left by the turmoil of 2022.
GalaxyOne Lending LLC provides this line of credit across 40 states, excluding California, Delaware, Idaho, Indiana, Minnesota, Mississippi, Missouri, Nevada, and South Dakota.