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VenturePrince returns to crypto sector with Galaxy One, offering yield-bearing accounts and integrated trading services<\/p>\n
Zac Prince, former chief executive and co-founder of the collapsed crypto lender BlockFi, has returned to the digital asset sector as head of Galaxy Digital\u2019s newly launched banking platform, Galaxy One. The move marks his first major leadership role since BlockFi\u2019s bankruptcy, which followed the downfall of the FTX exchange in 2022.<\/p>\n
Galaxy Digital, led by investor Mike Novogratz, hired Prince earlier this year to oversee the platform, which allows customers to earn yield on cash deposits and trade both cryptocurrencies and traditional equities. Galaxy One reflects the company\u2019s expansion into consumer-focused financial products amid tighter oversight and changing investor sentiment in the digital asset market.<\/p>\n
Speaking to Bloomberg, Prince said his risk tolerance has shifted following BlockFi\u2019s collapse, describing Galaxy as \u201cnight and day\u201d compared with his previous venture in terms of structure, regulation, and approach to risk.<\/p>\n
BlockFi, once one of the largest crypto lenders, became a symbol of the sector\u2019s lending boom and subsequent downturn. The company had offered interest-bearing accounts with returns of up to 9.5% before FTX\u2019s collapse left it without sufficient liquidity. It had previously raised capital from firms including Valar Ventures and Galaxy Digital, which led a $52.5 million funding round in 2018.<\/p>\n
In 2022, BlockFi settled charges from the U.S. Securities and Exchange Commission over its unregistered lending products and misleading statements to investors, paying $100 million in penalties.<\/p>\n
Prince\u2019s appointment at Galaxy marks a return to prominence for one of crypto\u2019s most visible figures from the last market cycle. Galaxy One\u2019s launch underscores the industry\u2019s gradual shift toward more regulated and risk-aware financial products.<\/p>\n
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