Galaxy blends Aave, Morpho and other DeFi rates in new GOFR crypto borrowing product

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.

This is not the only managed intermediary crypto lending product, a category that has seen fairly steady growth. Coinbase, for instance, launched a lending service where eligible users can borrow USDC against their bitcoin, ETH, and SOL holdings by sourcing loans on Morpho.

Coinbase’s offering originated over $1 billion in onchain loans just eight months in, by October 2025.

Galaxy’s GOFR product is differentiated in that it taps multiple lending programs to provide an aggregated rate. The company will also publish this “GOFR rate” publicly, with the idea that its seven-day and 30-day averages can act as a “reference point” for onchain financing across USDC, USDT and ETH.

Moreover, the company said it is committing up to $100 million of its own capital as first-loss protection and is using circuit breakers that pause new deployments if certain thresholds are breached.

The minimum loan size is $1 million, with flexible terms and durations.

“We’ve combined the best available DeFi rates with first-loss protection and full operational management, so clients can access onchain credit, real risk management, and none of the operational burden,” Bareiss said.

Galaxy operates one of the largest crypto lending desks, which also provides standard institutional crypto-backed loans, more sophisticated collar loans, miner financing, and other offerings. It is also becoming a major U.S. data center player and provides a litany of other crypto-related services.

The company posted a $216 million net loss in the first quarter of 2026, driven largely by declining crypto prices that weighed on its balance sheet.

GLXY is trading at $23.72, up over 1.5% on the day, according to The Block's equities price page.