Galaxy Digital Closes $75M Tokenized CLO on Avalanche as Onchain Credit Push Grows
- Galaxy completed a $75M tokenized CLO on Avalanche, with the capacity to scale issuance up to $200M.
- Grove anchored the deal with $50M, supporting crypto-backed consumer lending via Arch Lending.
- INX tokenized the tranches, enabling secondary trading for qualified investors on a regulated platform.
- Galaxy continues shifting beyond mining, adding onchain credit, computing infrastructure, and market testing.
Galaxy Digital Inc. has completed the initial closing of its first tokenized collateralized loan obligation, marking a new step in the use of blockchain-based credit structures. The $75 million issuance was completed on the Avalanche network and targets institutional investors.
Activity reflects Galaxy’s growing focus on on-chain finance alongside its traditional capital markets business.
Tokenized CLO Launches on Avalanche With $50M Grove Commitment
On Thursday, Galaxy Digital Inc. confirmed the transaction. The deal is anchored by a $50 million commitment from Grove, which is part of the Sky ecosystem, formerly known as MakerDAO.
Funds raised support an uncommitted credit facility for Arch Lending, a Galaxy Ventures-backed firm that issues consumer loans backed by crypto assets such as Bitcoin and Ether.
Proceeds from the CLO have been used to acquire loans under the facility as they are issued. Around $75 million has been financed so far, with room to expand to $200 million as loan volume grows. Pricing for the senior tranche is set at SOFR plus 570 basis points, with an initial maturity in December 2026.
According to Galaxy, debt tranches were issued and tokenized by INX and are expected to list on INX’s regulated ATS platform, which operates under Republic. Qualified investors will be able to access secondary trading within that regulated environment.
Key structural features of the transaction include:
- Tokenized CLO tranches issued directly on Avalanche.
- Institutional-only access through a regulated trading venue.
- Real-time loan and collateral tracking.
- Crypto-backed consumer loans as underlying assets.
- Capacity to expand issuance as new loans are originated.
Anchorage Digital Bank acts as bond trustee and qualified custodian. Its Atlas Settlement Network handles collateral management and administrative functions, allowing onchain settlement and continuous monitoring. Galaxy also partnered with Accountable, which provides a live dashboard showing loan performance and collateral levels.
Galaxy Digital Deepens Onchain Credit Push Amid Broader Business Shift
Chris Ferraro, Galaxy’s president and chief investment officer, said the transaction brings together debt markets, blockchain infrastructure, and asset management in a single structure. As such, it offers institutional investors a clearer and more flexible way to access credit markets.
“By uniting our strengths in debt capital markets, blockchain technology, and asset management, we’re opening a new avenue for institutional engagement in credit markets — one that benefits from greater efficiency, transparency, and expanded collateral flexibility through onchain execution”
Chris Ferraro said.
Broader changes at Galaxy follow shifts in the crypto mining sector after Bitcoin’s fourth halving in April 2024, which cut block rewards in half. Since then, Galaxy has increased its focus on high-performance computing. In October 2025, the firm closed a $460 million strategic investment to convert its Helios campus in Texas into an AI-focused data center for CoreWeave.
In a separate move, Galaxy is reportedly testing small-scale liquidity activity on prediction markets Polymarket and Kalshi. The firm is actively reviewing a possible expansion into market-making on those platforms.
Image by Andy Holmes from Unsplash
The post Galaxy Digital Closes $75M Tokenized CLO on Avalanche as Onchain Credit Push Grows appeared first on Live Bitcoin News.
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