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At a critical point in the accelerated integration of the Bitcoin ecosystem with traditional finance, the crypto financial infrastructure provider Galoy officially announced at the end of April 2026 that it has fully upgraded its native Bitcoin banking platform, focusing on community banks, regional banks, and credit unions in the United States. The upgrade offers a one-stop digital asset service solution tailored to meet the needs of traditional finance entering the Bitcoin space, removing key bottlenecks. This upgrade coincides with the eve of the Bitcoin 2026 International Conference in Las Vegas, marking a major step for Galoy in opening the doors to the mainstream U.S. financial market.

1. “Sidecar Model”: No disruption to existing systems, seamless Bitcoin integration
For thousands of traditional financial institutions in the U.S., fully replacing existing core banking systems not only takes years and incurs high costs but also carries significant operational risks. This is a core pain point that prevents many institutions from daring to venture into Bitcoin business. Galoy’s upgrade introduces a “Sidecar architecture,” completely alleviating this concern— the platform does not need to replace the bank’s existing legacy systems but instead acts as an independent overlay “attached” alongside the core system, like installing a “Bitcoin engine” in traditional banks. Banks can choose their integration partners freely, with no binding constraints, greatly lowering the barrier to entry.

2. Six core functions covering all Bitcoin financial scenarios
The upgraded platform integrates six core application scenarios, from lending to payments, from trading to custody, forming a complete Bitcoin service ecosystem that precisely matches the diversified needs of U.S. financial institutions:
1. Bitcoin collateral lending: The most favored “door-opener” for banks, aligned with traditional mortgage logic, supporting real-time monitoring of collateral ratios (LTV), automatic liquidation triggers, enabling banks to quickly develop Bitcoin collateral lending services without clients needing to sell Bitcoin to activate assets.
2. Lightning Network payments: Supports high-speed Bitcoin Lightning Network transfers, instant settlement, low fees, suitable for small and high-frequency payments by individuals and merchants.
3. Compliant stablecoin payments: Complies with U.S. GENIUS Act requirements, providing compliant stablecoin payment services, connecting traditional fiat and digital asset payment ecosystems.
4. Compliant Bitcoin trading: Follows the U.S. Office of the Comptroller of the Currency (OCC)’s “risk-free principal” model, with banks acting as intermediaries to match trades without bearing market volatility risks, enabling compliant Bitcoin buying and selling.
5. Dual custody solutions: Supports qualified third-party custody or banks’ self-built custody systems, ensuring Bitcoin asset security and meeting U.S. financial regulatory requirements.
6. Embedded digital wallet: Directly integrated into the bank’s existing mobile app, clients can manage Bitcoin assets with a single click without additional downloads, enhancing user convenience.

3. Three practical tools to solve regulatory and risk control challenges
The U.S. financial regulatory system is complex, making compliance and risk management for Bitcoin businesses extremely difficult. To address this, Galoy has launched three dedicated tools to safeguard financial institutions:
Regulatory Radar: Real-time aggregation of regulatory updates from OCC, Federal Reserve, FDIC, and other federal and state agencies, with plain-language interpretations of policy key points, clarifying compliance boundaries, enabling banks to keep pace with regulatory changes.
Asset Portfolio Analyzer: Built-in data from 8,652 FDIC-insured banks and credit unions across the U.S., allowing banks to import their loan data with one click, simulate Bitcoin collateral loan portfolio risks, and assist decision-making.
LTV Risk Stress Test: Simulates scenarios of sharp Bitcoin price fluctuations, measures the impact of collateral ratio changes on lending, and helps develop risk response plans in advance to reduce market volatility shocks.

4. Addressing industry pain points and initiating a new journey of Bitcoinization in traditional finance
Currently, the U.S. Bitcoin collateral loan market has interest rates as high as 12%-15%, mainly due to few market participants and limited supply. Galoy’s upgrade targets this market gap by providing standardized, low-cost technological solutions to lower the entry barriers for small and medium-sized financial institutions. It is expected to attract many institutions, drive down industry interest rates, and stimulate market activity.

For community banks and credit unions in the U.S., this upgrade is a “timely rain.” Amid the accelerated expansion of crypto services by large financial giants, small and medium institutions can leverage the Galoy platform to quickly fill Bitcoin service gaps, retain high-net-worth clients, open new revenue channels, and avoid marginalization in the digital wave.

From a broader industry perspective, Galoy’s “Sidecar model” and one-stop solution are breaking down barriers between traditional finance and the Bitcoin ecosystem. It is no longer just about technology delivery but providing U.S. financial institutions with a “low-risk, highly compliant, easy-to-implement” paradigm for Bitcoin business growth. As more institutions adopt this platform, Bitcoin is expected to truly integrate into the mainstream U.S. financial system, becoming an important supplement to traditional financial services, and Galoy will further solidify its leading position in Bitcoin banking infrastructure.