Galaxy, the crypto financial services firm led by Mike Novogratz, has launched the GalaxyOne Crypto Portfolio Line of Credit (PLOC), opening retail crypto-backed borrowing to eligible U.S. clients on August 25, the company announced.

The revolving line carries no origination fee and a variable 8.99% APR, with a 50% origination loan-to-value ratio. It is live in 40 states, and pledged BTC, ETH, and SOL are not rehypothecated, according to the company.

Eligible clients on the GalaxyOne platform can now borrow cash against Bitcoin, Ethereum, and Solana — staked SOL included — without selling a single coin. The PLOC lets users pledge BTC, ETH, and SOL inside one revolving line instead of taking a separate loan per asset. At a 50% loan-to-value ratio, a $100,000 portfolio backs roughly $50,000 in borrowing. Not selling also has a tax dimension in the United States: selling crypto is a taxable disposal, while borrowing against it generally is not.

Collateral values are monitored continuously. If asset values slip, GalaxyOne says it warns clients before any collateral action is taken. Draws usually fund instantly, and borrowers can spend the cash on-platform or withdraw it as USD or USDC stablecoins. The pledged crypto is not rehypothecated — Galaxy does not lend it out or reuse it while it backs the line — and staked SOL keeps earning rewards without unstaking.

"We're excited to bring a competitive crypto-backed borrowing product to market via our growing retail platform," said Zac Prince, Managing Director of GalaxyOne. "By leveraging Galaxy's institutional infrastructure, we are able to offer competitive rates, security and flexibility with our new crypto portfolio line of credit product."

The institutional reference is literal: Galaxy has operated a bitcoin-collateralized lending business for institutional clients since 2020, and the PLOC extends that desk to retail.

A retail push four years after the last blowup

The 2022 collapse of Celsius, BlockFi, and Voyager — which spread contagion throughout the crypto market — still frames the category. Those lenders froze customer funds and forced liquidations when prices fell.

The tie to that era is direct at GalaxyOne. Prince co-founded BlockFi and was its CEO until the lender's November 2022 bankruptcy filing; BlockFi's interest accounts paid customers yield by lending out their crypto, a model that drew a $100 million settlement with the SEC and state regulators in February 2022.

Galaxy's pitch is the opposite structure. The line runs on its own regulated platform instead of an external DeFi protocol, and pledged collateral stays put rather than being rehypothecated. Retail crypto-backed borrowing has been rebuilding since the 2022 wreckage — Coinbase, for one, now offers bitcoin-collateralized loans to U.S. retail users — and Galaxy is entering the same lane with a multi-asset line.

Sentiment has shifted since then, too. Just this week, crypto markets flipped to "extreme greed" for the first time since 2024, and Bitcoin and Ethereum ETFs added $23 billion in a week, with appetite across the sector growing of late.

GalaxyOne Lending LLC offers the line in 40 states. California, Delaware, Idaho, Indiana, Minnesota, Mississippi, Missouri, Nevada, and South Dakota are excluded.