Galaxy Digital launches crypto-backed revolving credit line

Galaxy Digital has launched a new Crypto Portfolio Line of Credit through its GalaxyOne platform, allowing eligible clients to borrow against Bitcoin, Ethereum, and Solana. The revolving credit facility enables users to access cash or USDC without selling their underlying crypto holdings. The product is available in 40 US states and accepts staked Solana, allowing customers to maintain staking rewards while using the assets as collateral.

The credit line features an 8.99% variable annual percentage rate (APR) with no origination fees and interest-only monthly payments. It begins with a 50% loan-to-value ratio. Galaxy stated that pledged collateral will not be rehypothecated, meaning the company will not lend or reuse the assets while they are serving as collateral for an active credit line.

Following the announcement, Galaxy Digital (GLXY) shares rose over 8% as investors reacted to the new lending product and the company’s expanding artificial intelligence infrastructure business.