Former BlockFi CEO Leads New Consumer Banking at Galaxy Digital
VenturePrince returns to the cryptocurrency sector with Galaxy One, which offers high-yield accounts and integrated trading services.
Zac Prince, former CEO and co-founder of collapsed cryptocurrency lender BlockFi, has returned to the digital asset sector as head of Galaxy One, Galaxy Digital’s newly launched banking platform. The move marks his first major leadership role since the BlockFi bankruptcy following the collapse of the FTX exchange in 2022.
Galaxy Digital, led by investor Mike Novogratz, hired Prince earlier this year to oversee the platform. This allows customers to earn returns on cash deposits and trade both cryptocurrencies and traditional stocks. Galaxy One reflects the company’s expansion into consumer-focused financial products amid increased oversight of digital asset markets and changing investor sentiment.
Prince said in an interview with Bloomberg that his risk tolerance has changed since BlockFi’s collapse, describing Galaxy as “night and day” compared to his previous ventures in terms of its structure, regulation and approach to risk.
Once one of the largest cryptocurrency lenders, BlockFi has become a symbol of the sector’s lending boom and subsequent recession. The company offered an interest-bearing account offering yields of up to 9.5% before FTX’s collapse left it illiquid. It previously raised capital from companies including Valar Ventures and Galaxy Digital, leading a $52.5 million funding round in 2018.
In 2022, BlockFi settled charges from the U.S. Securities and Exchange Commission over unregistered lending products and misleading statements to investors and paid a $100 million fine.
Prince’s appointment to Galaxy marks a return to prominence for one of the cryptocurrency industry’s most prominent figures from the last market cycle. The launch of the Galaxy One highlights the industry’s gradual shift towards more regulated and risk-aware financial products.