Galaxy Digital has introduced a crypto-backed portfolio line of credit on its GalaxyOne retail platform, allowing eligible U.S. customers to borrow dollars or USDC against a combined pool of Bitcoin, Ethereum and Solana rather than taking separate loans against each asset.
The product, launched on Aug. 25, offers a fixed annual interest rate of 8.99%, monthly interest payments and revolving borrowing access. Galaxy says funding is near-instant once a credit line is established, and it charges no origination fee. The service is currently available in 40 U.S. states.
Borrowers can initially draw up to 50% of the value of eligible collateral. A customer depositing $100,000 worth of BTC, ETH, SOL, or a mix of those assets, could therefore access as much as $50,000 in credit. The facility supports both U.S. dollars and USDC, the dollar-pegged stablecoin issued by Circle.
One collateral pool for BTC, ETH and SOL
GalaxyOne’s structure places several crypto assets inside one borrowing facility. That approach gives users a single collateral account rather than requiring a BTC loan, an ETH loan and a SOL loan to be opened and managed separately.
A diversified collateral pool can soften the effect of a price decline in one asset if the others remain stable or appreciate. It does not remove market risk: each token in the pool remains subject to volatility, and a broad crypto-market selloff could reduce the value of all pledged assets at once.
The initial 50% collateral ratio also leaves a substantial buffer, though the precise protection depends on Galaxy’s maintenance requirements. Galaxy has not publicly set out detailed margin-call thresholds or liquidation mechanics for the credit line. A large decline in collateral value could require borrowers to add assets, repay part of the balance, or face liquidation under the facility’s terms.
The platform says collateral pledged to support the loans will not be rehypothecated, meaning Galaxy will not reuse it to support additional lending or trading activities. That commitment addresses a central concern that emerged during the failures of several centralized crypto lenders in 2022, when customer assets and platform balance sheets were often more interconnected than users understood.
Staked solana can remain productive
GalaxyOne also accepts staked SOL as loan collateral, allowing customers to continue receiving Solana staking rewards while using the asset to secure a credit line, according to the product terms.
That feature could appeal to holders who do not want to unwind a staking position merely to obtain cash. Yet staking income should not be viewed as protection against a sharp fall in SOL’s market price. Borrowing costs remain fixed at 8.99% annually, while staking rewards can change and are paid in an asset whose dollar value may fluctuate.
The company permits broad uses for borrowed funds, including household expenses, tax payments and home down payments. Credit proceeds can also be used to trade U.S. stocks and ETFs through GalaxyOne, which combines crypto and equities access in one retail platform.
GalaxyOne launched in October 2025. Adding a secured credit product expands the platform beyond trading and custody, placing Galaxy in a segment that has become more cautious since the collapse of BlockFi, Celsius Network, Voyager Digital and other lenders four years ago.
Borrowing can defer a taxable sale
The primary appeal of a crypto-backed loan is access to liquidity without selling the underlying tokens. In the United States, selling appreciated crypto generally creates a taxable capital gain, while borrowing against it does not ordinarily constitute a sale.
For assets held longer than one year, the U.S. long-term capital-gains rate can reach 20% for higher-income taxpayers. The 3.8% net investment income tax can increase the marginal federal rate to 23.8% in applicable cases, before any state taxes.
A holder sitting on $1 million in unrealized Bitcoin gains could therefore face a federal tax bill exceeding $200,000 after a sale, depending on income and filing circumstances. Borrowing $500,000 against Bitcoin would avoid that immediate sale, but at Galaxy’s 8.99% fixed rate it would produce approximately $44,950 in annual interest expense before any repayment of principal.
That trade-off makes the product more suitable for users who have a defined liquidity need and can manage collateral volatility than for those using debt to extend speculative exposure. A loan preserves ownership of the crypto, but it also creates an obligation that can become harder to service if token prices decline.
Pricing sits near other centralized lenders
Galaxy’s fixed 8.99% rate sits within the range advertised by several crypto-backed lending providers, though direct comparisons depend heavily on collateral ratios, borrower location, asset eligibility and platform-specific conditions.
Ledn has listed rates around 10.4% for some products, while Figure has advertised rates near 9.9% and Strike has promoted starting rates around 9.5%. Nexo has advertised rates as low as 1.9%, subject to conditions that include holding its platform token. A floating-rate lending option connected to Morpho has been cited near 5%, although variable-rate products can change as market borrowing demand shifts.
Galaxy’s decision to use one fixed rate may give borrowers greater certainty over interest costs than a floating-rate facility. It also means borrowers pay the same stated annual rate even if decentralized lending rates decline.
A retail return for a lender associated with BlockFi
Zac Prince, managing director at GalaxyOne, has positioned the service as an effort to bring institutional-style infrastructure to retail users. Prince previously founded BlockFi, the crypto lender that filed for bankruptcy in November 2022 after the market turmoil surrounding FTX’s collapse.
That history will likely make Galaxy’s collateral handling and liquidation policies especially relevant to prospective customers. A non-rehypothecation commitment reduces one category of platform risk, but it does not shield borrowers from a margin call caused by falling crypto prices.
Customers considering the credit line would need to assess the borrowing limit conservatively, particularly when collateral consists largely of one volatile token. Maintaining unused borrowing capacity or holding liquid assets outside the pledged collateral can give a borrower more flexibility if Galaxy requests additional collateral during a rapid market decline.
GalaxyOne’s new facility gives crypto holders another way to convert paper wealth into spendable cash without selling tokens. Its usefulness will depend less on the convenience of near-instant funding than on how borrowers manage the familiar risks of leverage: interest expense, concentrated collateral and the possibility that a falling market turns a liquidity tool into a forced sale.
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