Galaxy issues $75M tokenized CLO on Avalanche

Galaxy Digital Inc. (GLXY) announced the initial closing of its first tokenized collateralized loan obligation (CLO), a $75 million issuance deployed on the Avalanche blockchain. The transaction is anchored by a $50 million allocation from Grove, an institutional credit protocol within the Sky ecosystem, formerly MakerDAO.

The CLO provides capital for an uncommitted credit facility extended to Galaxy Ventures-backed Arch Lending, which originates consumer loans overcollateralized with crypto assets such as Bitcoin and Ether. To date, roughly $75 million has been financed through the progressive purchase of outstanding loans, with capacity to scale up to $200 million as new loans are originated.

The structure carries a senior coupon priced at SOFR + 570 basis points, with an initial maturity in December 2026. Debt tranches were issued and tokenized by INX on Avalanche and are expected to be listed on INX’s ATS platform, enabling secondary trading access for qualified investors within a regulated venue.

Anchorage Digital Bank serves as bond trustee and qualified custodian, while Atlas Settlement Network acts as collateral and administrative agent, supporting real-time monitoring and onchain settlement. Galaxy also partnered with data verification platform Accountable to provide continuous transparency into loan performance and collateralization.

The deal comes as Galaxy continues to diversify its operations. Following Bitcoin’s fourth halving in April 2024, the firm has expanded into high-performance computing and AI infrastructure, including a $460 million strategic investment closed in October 2025 to convert its Helios campus in Texas into an AI data center hub.