Galaxy Launches Institutional On-Chain Financing Program GOFR, Providing First-Loss Protection with $100 Million in Self-Held Funds

Odaily Planet Daily News: Digital asset financial institution Galaxy has officially launched its institutional-grade on-chain financing program, GOFR (Galaxy On-Chain Financing Rate). This product allows institutional clients to indirectly access the DeFi on-chain credit market, with Galaxy serving 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 has 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 their own wallets, private keys, or interact with smart contracts. Galaxy handles all risk control and asset monitoring on behalf of clients. 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 addresses the operational and risk control pain points for institutions entering the on-chain credit market, combining on-chain financing returns with a standardized risk mitigation mechanism. (galaxy)