Key facts
- Galaxy launched its Crypto Portfolio Line of Credit (PLOC) on August 25 for eligible U.S. clients.
- The product allows borrowing against Bitcoin, Ethereum, and Solana, including staked SOL.
- It features a variable 8.99% APR and a 50% loan-to-value ratio.
- Pledged crypto collateral is not rehypothecated.
- The service is available in 40 U.S. states.
GalaxyOne has introduced a new crypto-backed line of credit, the Crypto Portfolio Line of Credit (PLOC), available to eligible U.S. clients since August 25. This product allows users to pledge Bitcoin, Ethereum, and Solana, including staked SOL, as collateral to borrow cash without selling their assets. The revolving line of credit features a variable annual percentage rate of 8.99% and a 50% loan-to-value ratio. Galaxy emphasizes that the pledged cryptocurrency is not rehypothecated, meaning it is not lent out or reused by the company while it backs the loan. Staked SOL will continue to earn rewards. Collateral values are continuously monitored, and clients receive warnings before any action is taken if their assets decline. Funds drawn can be used on-platform or withdrawn as USD or USDC stablecoins. Zac Prince, Managing Director of GalaxyOne, stated that the product leverages Galaxy's institutional infrastructure to offer competitive rates and security. The launch comes four years after the collapses of lenders like Celsius and BlockFi, with Galaxy positioning its regulated platform and non-rehypothecation policy as key differentiators. The service is currently available in 40 states, with specific exclusions including California, Delaware, Idaho, Indiana, Minnesota, Mississippi, Missouri, Nevada, and South Dakota.