Galoy launches Lana to unlock digital asset collateralized lending for challenger & community banks
A new service launched today makes it easy and fast for innovative banks of any size to unlock the transformative potential of digital asset-backed lending.
Lana is a powerful lending platform specifically tailored to meet the soaring demand for bitcoin-backed loans, especially designed for challenger and community banks. The new service from Galoy, the pioneering provider of Bitcoin-native banking infrastructure, significantly widens access to digital asset-backed lending via a secure, efficient, and regulatory compliant solution.
Built for flexibility and speed to market, Lana enables smaller challenger and community banks to bring to market fiat loans secured by bitcoin collateral—providing an attractive means for their customers to access liquidity without selling bitcoin.
Low-Risk Lending with High Liquidity
Bitcoin-backed lending offers reduced risk for banks due to bitcoin’s unparalleled liquidity. Lana simplifies the heavy operational work involved in offering digital asset-backed lending, including the processes involved in loan creation, approval workflows, fee and interest, calculation, and managing margin calls and liquidation, ensuring a reliable experience for banks and their clients.
Lana makes it easy and fast for banks to implement bitcoin-backed loans, reducing the time to market from months or years to just weeks. This enables them to diversify their lending portfolios while achieving better interest rate margins than conventional mortgage or consumer loans.
Why Borrow Instead of Sell?
With Lana, banks of any size can enable their businesses and personal customers to unlock liquidity from their bitcoin while retaining ownership of their assets. This approach allows borrowers to avoid capital gains taxes and maintain exposure to bitcoin’s long-term growth potential. This win-win solution enables a much wider range of banks and institutions to meet the expectations of modern clients seeking innovative financial solutions, and supports a virtuous circle of widening bitcoin adoption.
Seamless Integration and Flexible Custody
Lana integrates seamlessly with core banking systems, cryptocurrency custodians, and exchanges, ensuring compatibility with the existing banking ecosystem. The platform automates key processes like collateral management and liquidation, simplifying operations. Lana is designed for integration with existing custodial solutions, ensuring compatibility with the banking ecosystem and providing institutions with the flexibility to tailor their approach to compliance and risk management.
Ready for the Future of Lending
Lana is designed to meet rigorous regulatory standards, providing a fully auditable and scalable solution for bitcoin-backed lending. As the adoption of digital assets accelerates globally, Lana positions financial institutions to lead in this transformative era of lending.
“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. “We are proud to introduce a platform that supports financial institutions in navigating the future of banking.”