Key Takeaways
- • Galaxy Digital (NASDAQ/TSX: GLXY) announced the initial closing of Galaxy CLO 2025-1, its debut collateralized loan obligation, at approximately $75 million, tokenized on the Avalanche blockchain.
- • Grove, an institutional-grade credit infrastructure protocol within the Sky ecosystem (formerly MakerDAO), provided an anchor allocation of approximately $50 million.
- • Proceeds fund an uncommitted credit facility to Arch Lending, a crypto lending platform offering Bitcoin- and Ether-collateralized consumer loans, with the CLO able to scale to a $200 million limit.
- • The debt tranches carry a senior coupon of SOFR +570 bps, an initial maturity of December 2026, and monthly distributions, per the press release.
- • INX issued and tokenized the tranches, with listing planned on INX's ATS platform, a subsidiary of Republic, and Anchorage Digital serves as bond trustee, qualified custodian and collateral agent.
Summary
Galaxy Digital Inc. announced the successful initial closing of Galaxy CLO 2025-1, a new-issue collateralized loan obligation tokenized on the Avalanche blockchain, with an initial size of approximately $75 million, according to a PR Newswire release. The CLO represents Galaxy's first CLO issuance and will be used to support the company's lending activities.
The transaction closed with an approximately $50 million anchor allocation from Grove, an institutional-grade credit infrastructure protocol within the Sky ecosystem, formerly MakerDAO. Grove was incubated by Grove Labs, a subsidiary of Steakhouse Financial. Galaxy President and Chief Investment Officer Chris Ferraro described the transaction as a first-of-its-kind structure that combines Galaxy's capabilities in debt capital markets, blockchain technology and asset management.
The CLO finances an uncommitted credit facility provided to Arch Lending, a crypto lending platform backed by Galaxy Ventures that issues consumer loans overcollateralized with Bitcoin, Ether and other digital assets. Proceeds are being used to progressively purchase outstanding loans under the Arch facility, with approximately $75 million financed to date. The CLO may scale up to a $200 million limit as additional loans are originated.
The debt tranches were issued and tokenized by INX on Avalanche, with tokens expected to be listed on INX's ATS platform, a wholly owned subsidiary of Republic, for qualified investors. The stated terms include a senior coupon of SOFR +570 bps, subject to the governing transaction documents, an initial maturity of December 2026, and monthly distributions. Galaxy's Lending and Digital Infrastructure teams structured and tokenized the offering, while Galaxy Asset Management issues and manages the CLO. Anchorage Digital Bank acts as bond trustee and qualified custodian, and as collateral and administrative agent via its Atlas Settlement Network. NAV Consulting, Inc. will provide fund administration.
Galaxy also partnered with Accountable, a real-time data verification platform, to provide an interactive dashboard tracking the performance and collateralization of underlying loans. The company positions the structure as a blueprint for capital-efficient lending and onchain credit, citing instant settlement, structural transparency and potential secondary-market liquidity. Grove co-founder Sam Paderewski said the transaction shows that familiar securitization structures can be brought onchain without compromising institutional standards. The release contains forward-looking statements and risk factors, including exposure to digital asset market declines and regulatory changes.
The transaction closed with an approximately $50 million anchor allocation from Grove, an institutional-grade credit infrastructure protocol within the Sky ecosystem, formerly MakerDAO. Grove was incubated by Grove Labs, a subsidiary of Steakhouse Financial. Galaxy President and Chief Investment Officer Chris Ferraro described the transaction as a first-of-its-kind structure that combines Galaxy's capabilities in debt capital markets, blockchain technology and asset management.
The CLO finances an uncommitted credit facility provided to Arch Lending, a crypto lending platform backed by Galaxy Ventures that issues consumer loans overcollateralized with Bitcoin, Ether and other digital assets. Proceeds are being used to progressively purchase outstanding loans under the Arch facility, with approximately $75 million financed to date. The CLO may scale up to a $200 million limit as additional loans are originated.
The debt tranches were issued and tokenized by INX on Avalanche, with tokens expected to be listed on INX's ATS platform, a wholly owned subsidiary of Republic, for qualified investors. The stated terms include a senior coupon of SOFR +570 bps, subject to the governing transaction documents, an initial maturity of December 2026, and monthly distributions. Galaxy's Lending and Digital Infrastructure teams structured and tokenized the offering, while Galaxy Asset Management issues and manages the CLO. Anchorage Digital Bank acts as bond trustee and qualified custodian, and as collateral and administrative agent via its Atlas Settlement Network. NAV Consulting, Inc. will provide fund administration.
Galaxy also partnered with Accountable, a real-time data verification platform, to provide an interactive dashboard tracking the performance and collateralization of underlying loans. The company positions the structure as a blueprint for capital-efficient lending and onchain credit, citing instant settlement, structural transparency and potential secondary-market liquidity. Grove co-founder Sam Paderewski said the transaction shows that familiar securitization structures can be brought onchain without compromising institutional standards. The release contains forward-looking statements and risk factors, including exposure to digital asset market declines and regulatory changes.
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