Galaxy Launches Institutional On-Chain Financing Program GOFR, Provides First-Loss Protection with $100 Million in Self-Funded Capital

Odaily Planet Daily News: Digital asset financial institution Galaxy has officially launched the institutional-grade on-chain financing program GOFR (Galaxy On-Chain Financing Rate). This product helps institutional clients indirectly access the DeFi on-chain credit market, with Galaxy acting as the sole counterparty. It integrates interest rates from mainstream lending protocols such as Aave and Morpho to output a single optimized financing cost. Galaxy initially committed up to $100 million of its own capital as first-loss protection to reduce client lending risks. The business supports native Bitcoin directly as collateral, and clients do not need to manage wallets, private keys, or interact with smart contracts themselves. Galaxy handles risk control and asset monitoring throughout the entire process. The product is open to institutions, high-net-worth individuals, and qualified investors, with a minimum loan size of $1 million. A Galaxy lending business executive stated that GOFR solves the operational and risk control pain points for institutions entering on-chain credit, combining on-chain financing yields with a standardized risk backstop mechanism. (galaxy)