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Galaxy Launches GOFR, an On-Chain Financing Program for Institutions, with $100 Million in Proprietary Funds to Provide First-Loss Protection
Svmuu News: Galaxy, a digital asset financial institution, has officially launched GOFR (Galaxy On-Chain Financing Rate), an institutional-grade on-chain financing program. This product helps institutional clients indirectly access the DeFi on-chain credit market, with Galaxy serving as the sole counterparty. It aggregates interest rates from mainstream lending protocols such as Aave and Morpho to provide a single, optimized financing cost.Galaxy has initially committed up to $100 million of its own capital as first-loss protection to mitigate clients’ borrowing risks. The service supports native Bitcoin as direct collateral; clients do not need to manage wallets, private keys, or interact with smart contracts themselves, as Galaxy handles the entire process—including risk control and asset monitoring—on their behalf;The product is available to institutions, high-net-worth individuals, and accredited investors, with a minimum loan amount of $1 million per transaction. The head of Galaxy’s lending business stated that GOFR addresses the operational and risk management challenges institutions face when entering the on-chain credit market, balancing on-chain financing returns with a standardized risk-backstop mechanism. (galaxy)
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