Galaxy Digital is bringing crypto-backed borrowing back to U.S. retail investors, allowing eligible customers to access cash using Bitcoin, Ethereum and Solana as collateral without selling their holdings. The new product arrives four years after the collapse of Celsius, BlockFi and Voyager devastated the crypto lending market.
The GalaxyOne Crypto Portfolio Line of Credit launched August 25 with an 8.99% variable APR, no origination fee and an initial 50% loan-to-value ratio. It’s currently available in 40 U.S. states.
Instead of taking separate loans against individual cryptocurrencies, Galaxy allows customers to combine eligible assets into one revolving line of credit.
The product supports:
A customer holding $100,000 worth of eligible crypto could initially access approximately $50,000 in credit based on the 50% LTV ratio.
Because it’s a revolving credit line, borrowers don’t have to withdraw their entire approved amount at once. They can draw money as needed, repay it and borrow again while the line remains open.
One of the most important features is what Galaxy says it won’t do with customers’ collateral.
Pledged BTC, ETH and SOL will not be rehypothecated, meaning Galaxy won’t lend those assets to another borrower or reuse them to finance other activities while they secure the customer’s credit line.
That’s significant because rehypothecation played a major role in crypto lending’s 2022 collapse.
Companies such as Celsius, BlockFi and Voyager took customer assets and deployed them elsewhere to generate returns. When counterparties failed and crypto prices collapsed, several lenders couldn’t return customers’ money.
Galaxy is deliberately positioning its new product as a more conservative alternative.
Customer crypto → held as collateral → not loaned elsewhere → borrower receives cash.
The treatment of staked SOL is another notable feature.
Galaxy allows eligible customers to pledge staked Solana without first unstaking it, meaning the SOL can continue earning applicable staking rewards while also helping secure the credit line.
That potentially allows an investor to use the same asset in two ways simultaneously:
SOL generates staking rewards while also providing borrowing power.
It reflects a broader trend toward making crypto holdings productive financial assets rather than investments that simply sit inside wallets.
Galaxy says borrowers can use the money however they choose, including for tax obligations, real estate, home improvements, major purchases or additional investments.
The main attraction is avoiding the need to sell crypto to access cash.
Selling appreciated BTC, ETH or SOL can potentially trigger capital gains taxes while also eliminating the investor’s exposure if the asset continues rising.
Borrowing against those holdings offers another route:
Keep the crypto → pledge it as collateral → borrow dollars or USDC → repay the loan later.
The tradeoff is that borrowers take on interest expenses and risk if the value of their collateral falls.
Galaxy isn’t alone in reviving crypto-backed lending.
Coinbase offers eligible customers loans backed by crypto, while Ledn and Nexo also operate crypto-backed lending products.
But the history of this sector makes Galaxy’s launch particularly noteworthy.
The 2022 collapse of crypto lenders left billions of dollars trapped and destroyed confidence in centralized lending platforms. Galaxy is betting the market is ready to try again — this time with clearer collateral rules and institutional infrastructure.
The company also enters the market during renewed crypto enthusiasm, with Bitcoin and Ethereum ETFs recently attracting billions in fresh capital.
For Galaxy, the opportunity is bigger than simply offering another loan product.
It’s about turning crypto wealth into something investors can borrow against without having to cash out.
Bitcoin, Ethereum and Solana aren’t just assets GalaxyOne customers can hold anymore. They’re becoming collateral for accessing everyday dollars.
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