Galaxy on Tuesday rolled out retail crypto-backed credit lines. Eligible clients on its GalaxyOne platform can now borrow cash against Bitcoin, Ethereum and Solana, including staked SOL, without selling their coins.
One revolving credit line backed by BTC, ETH and SOL
The product is called the Crypto Portfolio Line of Credit, or PLOC. It allows users to pledge BTC, ETH and SOL inside a single revolving credit line instead of taking out a separate loan for each asset. Galaxy set a variable annual percentage rate of 8.99% and an origination loan-to-value ratio of 50%, so a $100,000 portfolio would back about $50,000 in borrowing.
Galaxy said collateral values are monitored continuously. If the pledged assets decline, GalaxyOne says it warns clients before taking any collateral action. Draws are usually funded instantly, and the proceeds can be used on-platform or withdrawn as U.S. dollars or USDC stablecoins.
Pledged crypto is not rehypothecated
According to Galaxy, crypto pledged to support the line is not rehypothecated. The firm said it does not lend out or reuse those assets while they secure the credit facility. Staked SOL can also keep generating staking rewards without being unstaked.
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.」
A retail expansion four years after the 2022 lending failures
The category is still shaped by the 2022 collapses of Celsius, BlockFi and Voyager. Those lenders froze customer funds and forced liquidations when prices fell, and the fallout spread across the broader crypto market.
Galaxy is presenting this product as the opposite structure. The credit line runs on its own regulated platform rather than an external DeFi protocol, and pledged collateral stays in place instead of being rehypothecated.
Decrypt also noted a shift in market sentiment. This week, the crypto market moved into “extreme greed” for the first time since 2024. At the same time, Bitcoin and Ethereum ETFs added $23 billion in one week, pointing to stronger appetite across the sector.
Available in 40 states, with nine exclusions
The timing gives Galaxy another attempt at reopening retail crypto-backed borrowing under a regulated setup, an opening left difficult to fill after the 2022 failures.
GalaxyOne Lending LLC offers the credit line in 40 states. California, Delaware, Idaho, Indiana, Minnesota, Mississippi, Missouri, Nevada and South Dakota are excluded.
