Galaxy launches crypto-backed line of credit with 8.99% APR in 40 states

Galaxy, a leading digital asset and blockchain investment firm, has introduced the GalaxyOne Crypto Portfolio Line of Credit (PLOC) for eligible United States clients. The company launched this revolving credit product on August 25, allowing users to borrow against their holdings of Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) without disposing of any assets.

Flexible borrowing for crypto holders

Clients on Galaxy’s GalaxyOne platform now have access to a retail crypto-backed credit line. With this service, users can pledge a combination of BTC, ETH, and SOL—including staked SOL—as collateral within a single revolving line, rather than establishing separate loans for each asset. The platform provides a variable annual percentage rate (APR) of 8.99% and applies a 50% loan-to-value (LTV) ratio. For instance, with a collateral value of $100,000, a client can borrow up to $50,000.

GalaxyOne ensures that collateral values are continuously monitored. If the pledged assets decline in value, the platform states that it will notify clients prior to taking any collateral action such as liquidation. Borrowers receive funding instantly, and can use proceeds directly on the platform or withdraw as USD or USDC stablecoins.

Significantly, Galaxy reports that pledged cryptocurrency will not be rehypothecated—meaning it is not lent out or reused while serving as collateral. Additionally, users who include staked SOL as collateral will continue to earn staking rewards, and are not required to unstake their tokens.

Mini dictionary: Rehypothecation is the practice where financial institutions use assets posted as collateral by their clients for their own purposes, often re-lending these assets or using them for proprietary trading. Avoiding rehypothecation adds a layer of user protection in the event of institutional failure.

Platform features and security

Zac Prince, Managing Director of GalaxyOne, remarked that the team is “excited to bring a competitive crypto-backed borrowing product to market via our growing retail platform.” He explained that leveraging Galaxy’s institutional infrastructure allows clients to benefit from competitive rates, increased security, and greater flexibility in a regulated environment.

By leveraging Galaxy’s institutional infrastructure, clients are offered competitive rates, security and flexibility with the new crypto portfolio line of credit product, according to Managing Director Zac Prince.

Galaxy developed the product in direct response to high-profile collapses in the crypto lending sector, such as those seen at Celsius, BlockFi, and Voyager in 2022. During that period, these lenders froze customer accounts and conducted forced liquidations when crypto prices fell sharply, leading to widespread contagion in digital asset markets.

In contrast, Galaxy emphasizes the security of its platform, stating that all collateral remains on Galaxy’s regulated infrastructure rather than being managed through external decentralized finance (DeFi) protocols or subject to rehypothecation.

Market environment and availability

Interest in crypto lending has seen renewed growth, with sentiment in digital asset markets recently moving into “extreme greed” territory for the first time since 2024. Investor appetite is surging, underscored by Bitcoin and Ethereum exchange-traded funds (ETFs) accumulating $23 billion in inflows over the past week.

Crypto markets have recently shifted to “extreme greed,” while demand across digital assets rises, with Bitcoin and Ethereum ETFs reporting strong inflows.

GalaxyOne Lending LLC is offering the credit line in 40 US states. The product is currently not available in California, Delaware, Idaho, Indiana, Minnesota, Mississippi, Missouri, Nevada, and South Dakota.