Galaxy opens retail crypto-backed credit lines for Bitcoin, Ethereum and Solana

Galaxy opened retail crypto-backed credit lines on Tuesday through its GalaxyOne platform. GalaxyOne Lending LLC offers the Crypto Portfolio Line of Credit in 40 states. California, Delaware, Idaho, Indiana, Minnesota, Mississippi, Missouri, Nevada and South Dakota are excluded. Eligible clients can pledge Bitcoin, Ethereum and Solana, including staked Solana, in one revolving credit line. Clients can borrow cash without selling their cryptocurrency. Galaxy sets a variable annual percentage rate of 8.99%. Galaxy sets the origination loan-to-value ratio at 50%, so a $100,000 portfolio supports about $50,000 in borrowing. GalaxyOne monitors collateral values continuously. GalaxyOne says it warns clients before taking collateral action if asset values fall. Draws usually fund instantly. Clients can spend the cash on the platform or withdraw it as U.S. dollars or USDC. Galaxy says it does not rehypothecate pledged cryptocurrency. Galaxy does not lend out or reuse the collateral while it backs the credit line. Staked Solana continues earning rewards without being unstaked. Zac Prince, managing director of GalaxyOne, said Galaxy is offering the product through its retail platform. Prince said Galaxy is using its institutional infrastructure to provide rates, security and flexibility. The 2022 collapses of Celsius, BlockFi and Voyager led those lenders to freeze customer funds and force liquidations when prices fell. Galaxy offers the credit line through its own regulated platform instead of an external DeFi protocol. Crypto markets reached extreme greed this week for the first time since 2024. Bitcoin and Ethereum exchange-traded funds added $23 billion in one week.