Galaxy Digital (NASDAQ:GLXY) launched a crypto-backed credit line Tuesday, letting clients borrow against Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) without selling.
What the Product Actually Offers
According to a Galaxy press release, the GalaxyOne Crypto Portfolio Line of Credit combines BTC, ETH, and Solana (CRYPTO: SOL), including staked SOL, as collateral under a single revolving credit line.
Clients keep earning staking rewards on pledged SOL while borrowing against it, and collateral is not rehypothecated, meaning Galaxy cannot lend it out or reuse it while it backs the line.
Funds can go toward tax obligations, real estate, home improvements, or other expenses without triggering a taxable sale of the underlying crypto.
