Galaxy Digital Inc. (NASDAQ/TSX: GLXY) announced Thursday the initial closing of its first tokenized collateralized loan obligation, a $75 million issuance 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, according to a statement shared with The Block. Galaxy said 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.
The company stated proceeds from the CLO have been used to progressively purchase outstanding loans under the facility, with approximately $75 million financed to date and capacity to scale up to $200 million as new loans are originated. Per the statement, the CLO carries a senior coupon priced at SOFR +570 bps with a stated initial maturity of December 2026.
“We are pleased to have leveraged Galaxy’s diversified business model to execute this first-of- its-kind transaction,” Chris Ferraro, President and Chief Investment Officer at Galaxy, said in the statement. “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.”
Galaxy’s broader expansion push
According to the statement, the CLO’s debt tranches were issued and tokenized on the Avalanche blockchain by INX, with the tokens expected to be listed on INX’s ATS platform, a wholly owned subsidiary of Republic. Galaxy said the structure allows for secondary trading access for qualified investors within a regulated venue.
Anchorage Digital Bank serves as the bond trustee and qualified custodian for the transaction. The firm’s Atlas Settlement Network acts as the collateral and administrative agent, providing infrastructure for real-time monitoring and onchain settlement, per the statement.
Additionally, Galaxy said it partnered with data verification platform Accountable to provide a dashboard for continuous transparency into the performance and collateralization of the underlying loans.
The transaction follows a period of operational diversification for Galaxy. Following Bitcoin’s fourth halving in April 2024, which reduced block rewards from 6.25 BTC to 3.125 BTC, the company has expanded its focus toward high-performance computing.
In October 2025, Galaxy closed a $460 million strategic investment from an undisclosed asset manager to fund the conversion of its Helios campus in Texas into an AI data center hub for CoreWeave.
Separately, Bloomberg reported that Galaxy is exploring potential partnerships with prediction market platforms Polymarket and Kalshi, where the firm has conducted small-scale liquidity provisioning experiments. Novogratz told Bloomberg that Galaxy is evaluating broader market-making activity on those platforms.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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