Galaxy One introduced its Crypto Portfolio Line of Credit this week. The product lets eligible clients borrow cash against Bitcoin, Ether, and Solana. Notably, the line carries an 8.99% APR and charges no origination fee. Galaxy funds approved draws instantly in either USD or USDC. Additionally, the company accepts staked SOL as eligible collateral. The offering opened in 40 U.S. states at launch. Galaxy One is the retail app operated by Nasdaq-listed Galaxy Digital, the firm led by Mike Novogratz.
Now live: A single line of credit against your $BTC, $ETH, and $SOL.
— Galaxy (@galaxyhq) August 25, 2026
✅No origination fee, 8.99% APR*
✅Liquidity without selling**
Learn more about @galaxyoneapp's Crypto Portfolio Line of Credit ⬇️ pic.twitter.com/l03Iz8e2Zs
How the Revolving Line Actually Works
A portfolio line of credit behaves differently from a standard term loan. Rather than borrowing a fixed amount, clients draw against an approved limit. Galaxy pools eligible BTC, ETH, and SOL into a single collateral base. As a result, borrowers avoid opening separate loans for each asset. Interest accrues only on the balance a client actually draws. Importantly, the structure lets holders raise cash without selling their positions. That distinction matters for taxes, since a sale usually triggers a capital gains event. A loan, by contrast, does not.
The BlockFi Shadow Over Crypto Lending
Zac Prince runs Galaxy One as managing director. He co-founded BlockFi and led it until the lender collapsed after FTX failed in 2022. Galaxy Digital had itself led a $52.5 million round into BlockFi back in 2018. That history explains one specific term in the new product. Galaxy states plainly that it does not rehypothecate client collateral. Rehypothecation means a lender reuses posted collateral to fund its own borrowing. The practice sat at the center of the 2022 lending blowups. Consequently, Galaxy is selling custody discipline as much as it sells a rate.
We’re excited to bring a competitive crypto-backed borrowing product to market via our growing retail platform
Zac Prince – Galaxy One Managing Director.
Where the Credit Line Fits in Galaxy’s Stack
Galaxy One launched in October 2025 after Galaxy acquired the personal finance app Fierce. The app now bundles several products into one account. Clients get a cash account paying 3.50% APY, insured by the FDIC through Cross River Bank. Accredited investors can access Galaxy Premium Yield at 8.00%, structured as a note from Galaxy Digital LP. The platform also offers commission-free trading in U.S. stocks and ETFs, with SIPC coverage. Crypto trading covers BTC, ETH, SOL, and PAXG, with Paxos Trust Company holding custody under NYDFS supervision. Galaxy added SOL staking in March 2026 at rates reaching 6.50%. The credit line completes the loop by turning those holdings into spendable liquidity.
Galaxy Now Lends to Retail and Institutions
Galaxy built the retail line on infrastructure it already runs for larger clients. In July 2026, the firm launched GOFR, a managed onchain lending program. GOFR routes institutional borrowers into Aave, Morpho, Spark, and Kamino through a single rate. Galaxy committed up to $100 million of its own capital as first-loss protection there. That program requires a $1 million minimum, which puts it out of retail reach. Meanwhile, Galaxy reported $4.4 billion in assets under management as of June 30, 2026. The company also holds $2.8 billion in assets under stake. Galaxy therefore covers both ends of the borrower market from one balance sheet.
The Rate Lands in the Middle of the Pack
The 8.99% rate reads competitive, though it does not lead the market. Coinbase offers BTC-backed loans through Morpho at rates starting near 5%. However, that rate floats with onchain pool utilization and can climb. Ledn charges roughly 10.4% APR on its standard bitcoin-backed loan. Figure prices its crypto-backed product at 9.9% APR. Strike starts near 9.5% with a $10,000 minimum and a 50% maximum LTV. Nexo advertises rates as low as 1.9%, but the cheapest tiers require holding NEXO tokens. Galaxy’s flat 8.99% therefore trades peak savings for rate predictability.
A Lending Market That Is Shrinking, Not Booming
Galaxy is entering a market in contraction. Crypto-collateralized lending totaled $67.42 billion at the end of Q1 2026, according to Galaxy Research. That figure fell 5.1% from the prior quarter. It also sat 14.3% below the Q3 2025 peak of $78.67 billion. The decline continued into Q2 2026, when the market reached $56.16 billion. Still, CeFi borrowing has grown 271.69% since its Q4 2023 low of $6.8 billion. Tether dominates CeFi lending with 62.25% share, followed by Maple and Nexo. Galaxy is therefore competing for share in a consolidating field.
What Galaxy Has Not Disclosed
Several terms remain unpublished. Galaxy has not released maximum loan-to-value ratios for BTC, ETH, or SOL. The company also has not detailed margin call thresholds or liquidation mechanics. Minimum and maximum draw sizes stay unspecified in public materials. Borrowers should treat those gaps seriously before pledging collateral. A falling market can force collateral top-ups or trigger forced sales. Additionally, the 40-state footprint leaves ten states and several territories out for now. Anyone considering the product should read the full agreement inside the app.
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