Galaxy launches GOFR to aggregate DeFi borrowing rates

Galaxy Digital announced GOFR, the Galaxy Onchain Financing Rate, a managed lending product that aggregates variable borrowing rates from Aave, Morpho, Spark, Kamino and other onchain lending protocols into a single, continuously rebalanced rate for institutional and accredited borrowers.

Under the program, Galaxy will act as the sole counterparty to clients while sourcing and executing positions across multiple DeFi protocols. The firm will manage wallets, private keys and smart contract interactions, and will monitor ongoing exposures so clients do not need to interact directly with the underlying protocols.

Borrowers can post native bitcoin as collateral; Galaxy will handle any required token wrapping. The product supports financing in USDC, USDT and ETH. Galaxy set a $1 million minimum loan size and said terms and durations will be flexible. The firm will publish the GOFR as a public reference rate, including seven-day and 30-day averages.

Galaxy said it will continuously rebalance exposures across the selected protocols to maintain an optimized borrowing rate. The company committed up to $100 million of its own capital as first-loss protection for GOFR and will use circuit breakers to pause new deployments if predefined thresholds are exceeded.

Max Bareiss, Galaxy’s head of lending, commented that institutions see opportunity in onchain credit but prefer not to build or maintain the required infrastructure. He described GOFR as a way to combine available DeFi rates with first-loss protection and operational management so clients can access onchain credit without handling day-to-day operations.

GOFR joins a set of managed intermediary lending products that source loans from onchain protocols while presenting a single counterparty to clients. Coinbase, for example, offers a service that sources loans on Morpho and reached more than $1 billion in onchain originations within eight months of its launch.

Galaxy operates an institutional lending desk that offers crypto-backed loans, collar loans, miner financing and other credit products. The firm is also expanding data center operations in the United States. Galaxy reported a net loss of $216 million in the first quarter of 2026, which it attributed to declining crypto prices that affected its balance sheet.