Galaxy Offers Crypto-Backed Credit Lines on BTC, ETH, SOL
Galaxy has launched its GalaxyOne Crypto Portfolio Line of Credit (PLOC) for eligible U.S. clients, providing access to cash against Bitcoin, Ethereum, and Solana without selling a single coin.
The revolving line of credit features no origination fee and a variable 8.99% APR with a 50% loan-to-value ratio. For example, a $100,000 portfolio can back around $50,000 in borrowing.
The company says the pledged crypto isn't rehypothecated, meaning it won't be lent out or reused while backing the line of credit. This is a key differentiator from other crypto lenders that froze customer funds and forced liquidations during the 2022 collapse of Celsius, BlockFi, and Voyager.
Zac Prince, Managing Director of GalaxyOne, said: 'We're excited to bring a competitive crypto-backed borrowing product to market via our growing retail platform. By leveraging Galaxy's institutional infrastructure, we are able to offer competitive rates, security and flexibility with our new crypto portfolio line of credit product.'