As the financial industry grapples with integrating Bitcoin into traditional banking, Galoy has emerged with a comprehensive solution. At the Bitcoin 2026 conference, the company unveiled an expanded version of its Bitcoin-native core banking platform, aiming to streamline how banks and credit unions adopt cryptocurrencies. This platform bundles six essential use cases into a cohesive system, supported by tools that address regulatory uncertainty and risk management. Below are the ten key elements that define this innovation.
1. Bitcoin-Backed Lending
Galoy's platform enables banks to offer loans secured by Bitcoin, mirroring traditional collateralized lending practices. The system provides real-time loan-to-value (LTV) tracking, automated liquidation triggers, and approval workflows that integrate with existing credit processes. This approach addresses the volatility of Bitcoin while leveraging familiar lending structures. For smaller banks, Galoy's earlier Lana software facilitates entry into this market, potentially lowering borrowing rates for customers.
2. Lightning Payments Integration
The platform supports instant, low-cost transactions via the Lightning Network, a layer-2 scaling solution for Bitcoin. This feature allows banks to offer near-zero fee payments to customers, enhancing the utility of Bitcoin for everyday purchases. Galoy ensures that Lightning payments are seamlessly integrated with existing banking interfaces, making it easy for institutions to process these transactions without altering their core infrastructure.
3. Stablecoin Payments Aligned with Legislation
Recognizing the evolving regulatory landscape, Galoy incorporates stablecoin payment capabilities that comply with emerging laws. This allows banks to facilitate transactions using stablecoins tied to fiat currencies, providing a bridge between traditional finance and digital assets. The platform adapts to legislative changes, ensuring institutions remain compliant while offering diverse payment options.
4. Bitcoin Exchange Under OCC Riskless Principal Model
Galoy enables banks to act as intermediaries in Bitcoin trades using the Office of the Comptroller of the Currency's (OCC) riskless principal model. This structure allows institutions to execute buy and sell orders on behalf of customers without holding inventory, minimizing market exposure. The platform handles the technical and compliance requirements, simplifying entry into crypto exchange services.
5. Custody Solutions
The platform provides secure storage for Bitcoin, including cold wallet options and multi-signature authorization. Custody features are designed to meet institutional standards, offering banks the ability to safeguard customer assets while maintaining regulatory compliance. This component is critical for banks looking to offer full-service crypto products.
6. Embedded Wallet Infrastructure
Galoy's platform includes white-label wallet capabilities that can be integrated directly into banking apps. Customers can send, receive, and store Bitcoin without leaving their banking dashboard. The wallets are designed with user-friendly interfaces and robust security protocols, reducing friction for both the institution and its clients.
7. Sidecar Architecture for Legacy Systems
Rather than replacing existing core banking systems, Galoy's software operates as a sidecar—a complementary layer that runs alongside legacy rails. This approach acknowledges that many institutions are hesitant to overhaul their infrastructure. The sidecar model accelerates adoption by minimizing disruption and allowing banks to add Bitcoin capabilities incrementally.
8. Regulatory Radar
To help banks navigate complex regulations, Galoy offers a tool called Regulatory Radar. It aggregates guidance from federal and state agencies, translating it into plain-language summaries. This assists compliance teams in understanding requirements without sifting through dense legal texts. The tool updates continuously, reflecting the dynamic regulatory environment in the U.S.
9. Portfolio Analyzer
The Portfolio Analyzer tool allows bank executives to visualize how Bitcoin lending would affect their balance sheets. By pre-loading data from thousands of U.S. financial institutions, it models risk exposure and profitability. This helps decision-makers assess whether integrating Bitcoin aligns with their risk appetite and strategic goals.
10. LTV Risk Scenarios
Galoy's LTV Risk Scenarios tool simulates sharp price movements in Bitcoin to evaluate collateral stability. It projects how a 30% drop, for example, could trigger margin calls or capital adequacy issues. This modeling equips banks with data to set prudent lending limits and prepare contingency plans, addressing a major hurdle for BTC-backed lending adoption.
Galoy's comprehensive platform marks a significant shift in how U.S. banks can approach Bitcoin. By offering a unified system that integrates lending, payments, exchange, and risk tools, the company lowers barriers for institutions previously hesitant. As the industry moves from pilot programs to revenue-generating applications, Galoy's sidecar approach and focus on regulatory clarity position it as a key enabler of Bitcoin banking.