Zac Prince of BlockFi chapter fame has been named as managing director of Galaxy Digital’s new 8% APY yield product.
Whereas slowly main BlockFi into chapter 11, Prince marketed rates of interest on Circle’s USD stablecoin of seven.5%. Now as head of Galaxy One, he’s promoting 8% APY on USD.
With funds “generated by Galaxy’s institutional lending business,” Galaxy One guarantees to pay 8% APY on $25,000 minimal deposits of US accredited buyers. This system is technically an funding be aware of a subsidiary of Mike Novogratz’s Galaxy Digital Inc. and isn’t FDIC insured.
“Expectations are clear: more yield,” wrote Prince in a press launch this morning. Galaxy One prospects could auto-reinvest their curiosity into bitcoin, ether, and solana.
Previous to BlockFi’s chapter, Prince instructed Bloomberg, “It’s like you got strapped into a rocket ship and it’s taking off.” His startup on the time had simply amassed $13 billion from prospects and added Visa and Constancy partnerships.
Non-accredited Galaxy One prospects have the choice of a extra conservative, 4% APY money deposit account with FDIC insurance coverage as much as $250,000.
Prince led BlockFi into chapter 11 and agreed for his firm to pay $100 million in fines. BlockFi lent crypto to an assortment of degenerate establishments, together with FTX, Alameda Analysis, and Three Arrows Capital.
Prince says BlockFi and Galaxy One are ‘night and day’
Promising to be totally different this time, Galaxy’s “institutional lending business” will lend out Galaxy Premium Yield prospects’ property in an effort to generate greater than double the APY of common US high-yield financial savings accounts.
Galaxy digital hasn’t disclosed the complete breakdown of the counterparties for its lending enterprise.
Chatting with Bloomberg, Prince promised that his threat administration practices at Galaxy One are “night and day” regardless of “preserving a lot of the great things BlockFi did.”
He claims that there are extra “risk folks” at Galaxy than there have been at BlockFi.
BlockFi Curiosity Account prospects misplaced cash within the chapter. Prince’s firm was unable to return all prospects’ principal after his firm’s guide of loans failed.
BlockFi as soon as employed over 850 individuals and brought on vital job losses in its November 2022 collapse.
At chapter, BlockFi admitted to 100,000 collectors, with liabilities and property starting from $1 billion to $10 billion. Though some BlockFi curiosity account prospects obtained partial compensation, payouts had been calculated at a reduction to the USD worth of already depressed crypto costs as of the corporate’s chapter submitting.
Regardless of losses, Zac Prince averted any felony indictment
Though Prince averted jail time for his misdeeds, one other government of an identical crypto yield firm wasn’t so fortunate.
Alex Mashinsky of Celsius, which provided aggressive rates of interest to BlockFi throughout a lot of BlockFi’s time in operation, obtained a 12-year jail sentence for his government failures.
Not like Mashinsky, Prince was by no means publicly identified to be the topic of a felony indictment. He and BlockFi had been defendants in quite a few civil proceedings, however no public file exists of a felony indictment for his position at BlockFi.
This morning, he marketed 8% yield to US buyers.
With Galaxy Premium Yield, you may earn 8.00% yield on money — powered by Galaxy’s institutional lending infrastructure, out there to U.S accredited buyers solely. https://t.co/zeio2jATM0
— Zac Prince (@GalaxyOneZac) October 7, 2025
BlockFi’s dropping ties to FTX and the GBTC premium
Because it filed for chapter in November 2022, BlockFi sued FTX chief Sam Bankman-Fried.
Bankman-Fried had promised in June 2022 to bail out BlockFi with a $250 million capital injection.
Sadly, by November, BlockFi’s asset publicity to entities managed by FTX had risen as excessive as $4-5 billion as Bankman-Fried’s empire collapsed into chapter 11.
BlockFi was an arbitrageur of the once-lucrative Grayscale Bitcoin Belief (GBTC) premium.
Earlier than the arrival of spot bitcoin ETFs, accredited buyers might apply for placements of GBTC shares at a considerable low cost to GBTC’s heavily-inflated valuation and earn almost risk-free returns.
This arbitrage window finally closed, eliminating an necessary income for BlockFi.
