Galoy: Revolutionizing Banking with Lana Software
Galoy is a private company founded by Nicolas Burtey in September 2019, with its headquarters located in the United States. With a team of 11 employees, Galoy aims to transform the banking industry with its innovative solutions. The company’s website, https://www.galoy.io/, serves as a platform for its groundbreaking products and services.
Last week, Galoy introduced Lana, a software that empowers banks to accept bitcoin as collateral for loans. Lana is designed to assist community and challenger banks in offering bitcoin-backed loans to a diverse range of customers. By providing this service, Galoy aims to reduce the high borrowing costs associated with such products, which currently range from 12% to 15%.
Nicolas Burtey, the founder of Galoy, envisions a future where banks leverage bitcoin to provide more accessible and affordable loan options. With the regulatory landscape becoming more favorable towards cryptocurrency integration in banking, Burtey is optimistic about the potential for growth in this market.
Galoy’s journey began with the development of the Blink wallet, a custodial Bitcoin and Lightning wallet that gained popularity in Bitcoin circular economies globally. While Blink served as a stepping stone for Galoy, the company’s primary focus has now shifted towards enabling banks to embrace Bitcoin through Lana software.
Lana operates as a subscription-based platform that allows banks to issue bitcoin-backed loans according to their specified terms. The software automates loan processes and risk management, providing banks with a comprehensive solution for offering innovative financial products.
Galoy targets smaller financial institutions and community banks as the primary users of Lana, as these entities stand to benefit the most from this technology. By streamlining the loan issuance process, Galoy aims to empower banks to adopt bitcoin-backed loans efficiently and cost-effectively.
While Lana is currently not open-source, it follows a fair-source model that will transition to open-source after two years. This approach allows Galoy to generate revenue while maintaining transparency and accountability in its software development process.
Looking ahead, Nicolas Burtey envisions a future where open-source software revolutionizes the core banking industry. By offering accessible and affordable solutions for starting Bitcoin banks, Galoy aims to disrupt the traditional banking sector dominated by a few major players.
In conclusion, Galoy’s Lana software represents a significant step towards integrating Bitcoin into the banking sector. With a focus on innovation and accessibility, Galoy is poised to lead the way in reshaping the future of banking through technology and collaboration.