As traditional banks continue to grapple with integrating Bitcoin into their operations, Galoy is broadening its footprint in the U.S. banking sector. Unveiled ahead of the Bitcoin 2026 conference in Las Vegas, the company’s expanded Bitcoin-native core banking platform aggregates six critical use cases into a single, cohesive system. Rather than replacing existing infrastructure, the platform acts as a “sidecar” alongside legacy rails, enabling institutions to adopt Bitcoin services without a complete overhaul. This article explores the six core components that are reshaping how banks and credit unions approach cryptocurrency.
1. Bitcoin-Backed Lending
Bitcoin-backed lending forms the most immediate entry point for many financial institutions. The concept mirrors traditional collateralized loans—akin to those secured by equities or real estate—but with Bitcoin’s notable volatility. Galoy’s platform addresses the critical gap in real-time collateral monitoring and automated liquidation triggers. It offers tools for loan-to-value (LTV) tracking, integrated accounting systems, and approval workflows that feel familiar to credit officers. This functionality allows lenders to manage Bitcoin exposure without adding operational strain, making it a practical first step for banks exploring crypto lending.
2. Lightning Network Payments
Lightning payments are integrated into Galoy’s platform, enabling instant, low-cost Bitcoin transactions. For banks, this means customers can send and receive Bitcoin payments with near-zero fees and immediate settlement. The Lightning Network’s scalability addresses Bitcoin’s historical transaction speed limitations, making it viable for everyday purchases. By embedding this capability, Galoy allows institutions to offer cutting-edge payment services that compete with traditional card networks while retaining the security and decentralization of Bitcoin.
3. Stablecoin Payments Aligned with Legislation
With evolving regulatory frameworks, Galoy incorporates stablecoin payments that adhere to emerging legislative guidelines. This feature allows banks to facilitate stablecoin transactions—such as USD-pegged tokens—under clear compliance parameters. By aligning with federal and state standards, the platform reduces legal uncertainty for institutions. This is particularly valuable as stablecoins gain traction for remittances, settlements, and DeFi integration, offering a bridge between fiat and digital currencies within a regulated environment.
4. Bitcoin Exchange Under OCC Riskless Principal Model
Galoy’s platform supports Bitcoin exchange operations using the Office of the Comptroller of the Currency’s (OCC) riskless principal model. This approach allows banks to act as intermediaries for Bitcoin purchases and sales without taking on market risk. Instead, the bank executes simultaneous buy and sell orders, earning a fee. This model, previously approved for national banks, provides a compliant way for institutions to offer crypto trading services. Galoy’s integration streamlines the technical and regulatory aspects, making it easier for smaller banks to enter this space.
5. Custody Options
Secure Bitcoin custody is a cornerstone of Galoy’s offering. The platform provides institutional-grade storage solutions, including both hot and cold wallet options. This enables banks to hold Bitcoin on behalf of clients with robust security measures, such as multi-signature authentication and hardware security modules. Custody is essential for wealth management and estate planning services involving digital assets. Galoy’s solution integrates with existing banking systems, allowing seamless management of Bitcoin holdings alongside traditional portfolios.
6. Embedded Wallet Infrastructure
To complete the ecosystem, Galoy includes embedded wallet infrastructure within its platform. This allows banks to offer native Bitcoin wallets to customers directly through their banking apps. The wallets are designed for ease of use, supporting both on-chain and Lightning transactions. By embedding wallets, institutions can provide a unified user experience for sending, receiving, and storing Bitcoin—eliminating the need for third-party wallet providers. This feature is crucial for customer adoption and loyalty, as it simplifies access to Bitcoin services.
Tools to Address Uncertainty: Regulatory Radar
Beyond the six core use cases, Galoy introduces tools to mitigate regulatory and risk uncertainties. The “Regulatory Radar” compiles guidance from federal and state agencies into plain-language summaries. This helps compliance teams interpret complex regulations without sifting through dense legal texts. For banks navigating the shifting U.S. crypto landscape, this tool provides clarity and reduces the risk of noncompliance. It acts as a continuous feed of actionable information, enabling proactive adjustments to policies.
Portfolio Analyzer and LTV Risk Scenarios
Two additional tools address institutional concerns about Bitcoin exposure under stress. The “Portfolio Analyzer” pre-loads data from thousands of U.S. financial institutions, allowing executives to model how a Bitcoin lending book would impact their balance sheet. The “LTV Risk Scenarios” tool simulates sharp price movements to evaluate collateral adequacy and capital impacts. These features give banks the quantitative insights needed to make informed decisions about Bitcoin integration, moving beyond theoretical discussions to concrete risk management.
Galoy’s platform represents a maturation of Bitcoin in banking—shifting from innovation labs to production-ready systems. By offering a sidecar solution that integrates with legacy infrastructure, the company lowers barriers for adoption. Earlier efforts, like the Lana software for smaller banks, complement this broader strategy. As more institutions move Bitcoin from pilot programs to revenue lines, Galoy positions itself as a key enabler, providing both the functional tools and the risk management insights necessary for sustainable growth.