Galaxy Digital has unveiled a new fully managed crypto lending program targeting institutions, high-net-worth individuals, and accredited investors who want to borrow from major DeFi protocols but prefer to keep Galaxy as an intermediary.
The so-called Galaxy Onchain Financing Rate (GOFR) will offer borrowers a “single continuously rebalanced rate” by tapping onchain lending protocols like Aave, Morpho, Spark, Kamino, and others, according to the announcement on Tuesday.
It will then blend those protocols’ variable borrowing rates into an “optimized rate.” Users are only borrowing from Galaxy as their sole counterparty, the announcement notes.
“Institutions have been clear: the opportunity in onchain credit is real, but the infrastructure required to access it directly isn't something they want to build or own,” Galaxy head of lending Max Bareiss said in a statement.
To that end, Galaxy (GLXY) will manage any wallets, private keys, and smart contract interactions, while sourcing, executing, and monitoring positions. Users will also be able to post native bitcoin directly as collateral, with Galaxy handling any wrapping on their behalf.
