Galaxy Unveils Retail Crypto-Backed Credit Line with Competitive Rates
Galaxy has launched a new retail crypto-backed credit line on its GalaxyOne platform. Eligible U.S. clients can now borrow cash against Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) without selling their coins. The Crypto Portfolio Line of Credit (PLOC) product allows users to pledge multiple assets inside one revolving line, with a 50% loan-to-value ratio. This means that for every $100,000 in collateral, borrowers can access up to $50,000 in cash.
The PLOC has no origination fee and a variable annual percentage rate of 8.99%. The crypto pledged as collateral is not rehypothecated, meaning it's not lent out or reused while backing the loan. Staked SOL can continue earning rewards without being unstaked.
GalaxyOne Managing Director Zac Prince said they're excited to bring a competitive crypto-backed borrowing product to market. This move comes four years after the collapse of Celsius, BlockFi, and Voyager, which left a dark stain on the crypto lending industry. Galaxy's pitch is that their line runs on its own regulated platform, rather than an external DeFi protocol.
The PLOC is available in 40 states, with California, Delaware, Idaho, Indiana, Minnesota, Mississippi, Missouri, Nevada, and South Dakota excluded from the service.