Galaxy Digital has launched retail crypto-backed credit lines that allow customers to borrow cash against their Bitcoin, Ethereum, and staked Solana holdings without selling their assets, the firm announced.
How the Credit Lines Work
Through its GalaxyOne platform, clients can now tap into liquidity by using their digital assets as collateral. The credit lines carry an annual percentage rate of 8.99%, letting holders access cash while retaining ownership of their coins.
The offering supports three of the most widely held cryptocurrencies: Bitcoin, Ethereum, and staked Solana. By including staked Solana, Galaxy allows users to continue earning staking rewards while simultaneously borrowing against those assets.
Borrowers can unlock cash from their crypto holdings without ever having to sell a single coin.
The approach is designed to appeal to long-term holders who want to avoid triggering taxable events or missing out on potential future price gains that would come with selling their positions outright.
Bringing Institutional Tools to Retail
Crypto-backed lending has traditionally been the domain of institutional players and high-net-worth clients, but Galaxy's move aims to extend those capabilities to everyday retail investors through GalaxyOne.
The product reflects a broader trend of established crypto firms rolling out more sophisticated financial services as the industry matures and demand grows for ways to leverage digital assets beyond simple buying and holding.
Key features of the offering include:
- Borrowing against Bitcoin, Ethereum, and staked Solana
- A fixed 8.99% APR on borrowed funds
- The ability to keep assets rather than selling them
- Continued staking rewards on Solana collateral
As with any collateralized lending product, borrowers should weigh the risks of market volatility, which could lead to margin calls or liquidations if the value of their pledged assets declines sharply.