founder: Nicholas Perte
Foundation date: September 2019
Headquarters US
Number of employees: 11
Website: https://www.galoy.io/
General or private? private
Last week, Gallawi Lana launched programs that enable banks to accept Bitcoin as a guarantee of loans.
To help society and competitor Banks (the banks that Gallawi looks at work) to provide bitcoin -backed loans to different types of customers.
“Some banks may want to use for sale for retail trade, and some may want to use it to sell commercial customers or high -value individuals,” BurtCoin said.
By providing such loans to a wide range of customers, Burtey believes that the high cost of borrowing currently associated with these products will decrease.
“Upper rates today range from 12 % to 15 % if you want to get a loan using Bitcoin as a guarantee,” said Burtti.
“The rates are high because there are very few financial institutions that offer this type of product. We see an opportunity now because the regulations allow banks to do things with bitcoin.”
“We believe that many banks want to enter this market.”
If Burtey is right to predict that banks are keen to provide Bitcoin loans, this will not only lead to low rates of these loans, but they will also provide an open source Bitcoin program in the world of banking services, which can start a new direction in the industry.
But more on it in just one minute. First, some background on Gallawi.
History of Gallawi: Whoever flashs a portfolio to Lana
Galoy was founded in September 2019, and Galoy had an intention to enable banks to use Bitcoin from the beginning, but they had to stop doing this because of a non -friendly organizational environment.
So, instead, her efforts focused on creating and supporting Wallet (Which was originally called the Bitcoin Beach wallet, which was recently sold Gallawi), and Betcoin Al -Muqara and Lightning Wallet is mostly used in El Salvador and then in Bitcoin circular economies Globally.
“The mission of Gallawi was on board the plane to Bitcoin five years ago,” said Berte.
But the organizational environment has been so bad during the past five years that we decided to create a flash. The reason we are now focusing on our original mission is that at the end Stifling point 2.0 and SAB 121 cancellationWe now believe it’s the perfect time to help banks adopt bitcoin. “
Burtey talked about his work in creating and growing Blink with pride and shared that he had to stop working in the project only because it would be very difficult to continue his administration with the aim of also to present a new type of customer.
“Blink is a B2C (commercial business), and it is difficult to start in the early stage of focusing on very many things,” Berte explained.
He added: “Galoy is the work of B2B (from business to business), and we want to work with banks and financial institutions.”
“It is good to focus on only one thing.”
As we mentioned, this is the only thing that will now be.
How Lana works
Lana is a program that helps banks to integrate and manage subscription fees. With this program, banks can issue Bitcoin -backed loans under the conditions they create.
“We are not those who decide how much interest will be imposed or anything like that,” Berte explained.
He added: “We give banks the platform to do so, and after that they can know their cost of capital, loan duration, and the price of the bitcoin liquidation in the loan and the rate they want to lend.”
“We offer you software, help you run this program and automate.”
Another thing this field no Carrying out banks is a bitcoin custody provided as a guarantee of the loans they issue. Each of the banks that the company operates is responsible for choosing its secretary.
“You can go to Bitgo or Fireblocks, or it can have each of its Multisig loan,” said Berte. “We do not know the reservation.”
However, Lana Banks helps monitor Bitcoin in reservation so that banks can be aware of whether or not the guarantee approaches the levels of filtering.
“The main part of this product is risk management,” said Berte.
“Bitcoin is volatile, and the bank will need a tool to show that it bears calculated risks. Therefore, we will provide banks with a information panel to monitor this danger.”
Who will use Lana?
Galoy targets community banks and other smaller financial institutions with this new product mostly because they believe that these smaller players will benefit more than – and because large banks will not need such a product.
“We do not think JP Morgan will really want to work with us,” said Berte. “They may build something like this themselves, while a smaller bank, a credit federation or a small company may not.”
Burtey also realizes that the smaller lenders merge Lana instead of building something that can be compared themselves can save these financial institutions a great deal of time and effort.
“Our goal is to say, see, you can develop this internally, and it will take six months, a year or more, depending on how you know Bitcoin,” said Burtti. “Or we have a lending product as a service for you, and you can run it more quickly.”
Since Burtey and his team on his first tour of the smaller banks, they will not do a history of enabling more banks to accept Bitcoin as a guarantee of loans, but they will likely change the course of banking services in general through an open entry -the Source program for that.
Bitcoin open banking services
The long -term Burtey’s vision of Galoy is to do more than just help banks to issue Bitcoin -backed loans. He looks forward to providing open source programs in banking services as more banks begin to embrace Bitcoin.
However, it is important to note that Lana is not open source yet. that it The fair source Software, under such a license, the symbol becomes open source after two years.
“It is a late open source system, but it is everything available on GitHub,” said Berte. “You can go, try it, test it, and play with it yourself.
Under a fair source license, no other company can sell the product to a bank at the present time, allowing Galoy to profit while continuing to build using an auditable code.
“We sell publication, and we help banks to connect their secretary,” Berte explained. “We are building in the open – but we also want to generate revenues.”
Besides helping banks to implement Lana, BURTEY wants to develop an open source “basic banking program”, as it is looking to disrupt the “LEDGER” monopoly.
“The basic professor’s book is the place where banks store account data, customer information and transactions details.” “It is the source of the truth for banks.”
And only 3 companies – Fis, Fiserv and Jack Henry – have a basic professor book market.
“All of these are similar to a hundred billion dollars of companies that you may have never heard about because everything they do is focus on selling programs to banks,” said Burtti.
“Our goal in the long run is to disrupt this industry by making something open source,” said Burtti. “Today, there is no company that undertakes basic banking services with the open source idea, so we are working for it.”
Burtey conceives a world that can make open source software easy for someone to start Bitcoin. (For those who are used in the phrase “Bitcoin” and “Bank” that is used in the side books Bitcoin -backed banks will be a scaling solution.)
“The start of a bank today is an expensive and complicated process,” said Berte. “You have to pay $ 100,000 in addition to buying a basic professor’s notebook technology.”
Burtey then referred to his own experience in the start of Wlink Wallet, which is basically Bitcoin Bank on an open source icon, before follow -up.
“I just went to El Salvador and started what was my bank effectively because I wanted it,” said Burtti.
He added: “We need to re -invent how basic banking programs in the world of bitcoin, and I think this is where the open source becomes relevant.”
“This is why I think the bank and Bitcoin world will be completely different from the banking world with Fiat, and I think we are one of the companies at the forefront of this.”
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