Galoy Debuts Lending Platform to Meet 'Soaring' Demand for Bitcoin-Backed Loans

The company, maker of digital-asset-centric banking software, announced Thursday (Feb. 6) the launch of Lana, a lending platform designed to increase access to digital asset-backed lending.

Digital asset banking software provider Galoy has rolled out a new lending platform called Lana, designed to increase access to bitcoin-backed loans.

The platform is built for smaller challenger and community banks to integrate into their offerings, enabling their customers to access liquidity without selling their bitcoin, according to a news release.

Lana simplifies the work involved in offering digital asset-backed lending, including loan creation, approval workflows, fee and interest calculation, and managing margin calls and liquidation, the release adds.

It also integrates with core banking systems, cryptocurrency custodians and exchanges and is designed to meet “rigorous” regulatory standards, according to Galoy.

“Lana equips banks with the tools to offer bitcoin-backed loans confidently and efficiently, creating new opportunities for growth while meeting evolving client needs,” said Nicolas Burtey, founder at Galoy, in the release. “We are proud to introduce a platform that supports financial institutions in navigating the future of banking.”

The launch of Lana comes amid a changing landscape for cryptocurrency in the U.S. As PYMNTS reported earlier this week, the Securities and Exchange Commission (SEC) has launched a new crypto task force and shifted the internal lawyer in charge of its many high-profile crypto lawsuits, Jorge Tenreiro, to an IT role.

“The SEC’s pivot isn’t happening in a vacuum,” that report said. “Pressure is mounting from Congress, crypto investors, and the White House to modernize the regulatory approach to digital assets.”

Research from the PYMNTS Intelligence report “Blockchain’s Benefits for Regulated Industries” shows that blockchain technology has a number of potential benefits to meet the unique needs of regulated industries such as finance.

“The largest financial institutions are eager to explore tokenized assets,” Nikola Plecas, head of commercialization, Visa Crypto, told PYMNTS in an interview in October, adding that they first need regulatory certainty to do so at scale.