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 out of business, 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 traders. This system is technically an funding notice 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 advised 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 out of business 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 completely different this time, Galaxy’s “institutional lending business” will lend out Galaxy Premium Yield prospects’ property with a purpose to generate greater than double the APY of common US high-yield financial savings accounts.
Galaxy digital hasn’t disclosed the total breakdown of the counterparties for its lending enterprise.
Talking to 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 precipitated important 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 reimbursement, payouts have 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 prison indictment
Though Prince averted jail time for his misdeeds, one other government of an analogous 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.
In contrast to Mashinsky, Prince was by no means publicly recognized to be the topic of a prison indictment. He and BlockFi have been defendants in quite a few civil proceedings, however no public report exists of a prison indictment for his position at BlockFi.
This morning, he marketed 8% yield to US traders.
With Galaxy Premium Yield, you possibly can earn 8.00% yield on money — powered by Galaxy’s institutional lending infrastructure, obtainable to U.S accredited traders solely. https://t.co/zeio2jATM0
— Zac Prince (@GalaxyOneZac) October 7, 2025
BlockFi’s shedding 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 out of business.
BlockFi was an arbitrageur of the once-lucrative Grayscale Bitcoin Belief (GBTC) premium.
Earlier than the appearance of spot bitcoin ETFs, accredited traders may 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 ultimately closed, eliminating an necessary income for BlockFi.
