Galaxy Launches Crypto Credit Line on GalaxyOne, Backed by BTC, ETH, and SOL

Galaxy Digital has expanded its digital trading and banking platform GalaxyOne with a new crypto-backed credit line. This facility allows eligible US clients to borrow against Bitcoin, Ethereum, and Solana without selling their holdings. Under a single revolving credit line, these three assets could be used as collateral.

Galaxy Digital’s GalaxyOne expands into crypto lending

Galaxy Digital’s GalaxyOne is offering a new crypto-backed credit line for eligible US users. The feature comes with zero origination fee and a variable 8.99% annual percentage rate. Initially, users can borrow up to half of the value of their crypto holdings such as Bitcoin, Ethereum, and Solana. This means that the borrowing facility starts at a 50% loan-to-value ratio. “We're excited to bring a competitive crypto-backed borrowing product to market via our growing retail platform," stated GalaxyOne MD Zac Prince.

As noted by Galaxy Digital, borrowers are required to pay interest on a monthly basis. With an interest-only payment, the borrowers are excluded from an immediate repayment of the principal amount. The platform provides the option to receive the money in US dollars or USDC. This helps the users to access liquidity quickly without having to sell their cryptocurrencies.

How does the borrowing facility work?

Interestingly, GalaxyOne’s new feature allows users to combine Bitcoin, Ethereum, and Solana under a single credit line instead of taking separate loans for each asset. In addition to BTC, ETH, and SOL, staked Solana can also be used as collateral without being unstaked. This helps users to keep earning applicable staking rewards, while also taking loans.

Moreover, Galaxy Digital stated that the crypto pledged as collateral will not be rehypothecated. In simple terms, the company will not lend out or reuse those assets which have already been used as collateral. They will remain held against the credit line until the borrowing is repaid.

It is worth noting that the latest development gives another major use case for GalaxyOne beyond crypto and stock trading. With the new feature, users can use their crypto holdings to get money without selling them. This could make the platform more attractive to investors who look for liquidity without giving up their long-term positions.

GalaxyOne enters a shrinking crypto lending market

Significantly, GalaxyOne’s credit line feature comes at a critical time. The broader crypto lending market is now witnessing a notable pullback. According to Galaxy Research, crypto-collateralized lending fell by about 16.7% in Q2 2026, hitting $56.16 billion. What is more concerning is that the latest decline marks the third consecutive quarterly decline. The report read,

“Q2 was the first quarter since Q4 2022 in which onchain lending declined across every category (CeFi, DeFi, and the crypto-collateralized portion of collateral debt position stablecoins), as the market’s deleveraging trend continued.”

This notable slump is seen across major lending segments. But DeFi lending exhibited the sharpest drop. Outstanding DeFi borrows declined by a massive 27.6%, while CeFi open borrows dropped 9.6%. For Galaxy Research, this decline signals a broader trend of continued market deleveraging rather than forced selling.