Galaxy Digital Inc. has taken another step in blending traditional credit markets with blockchain technology, announcing the initial closing of its first tokenized collateralized loan obligation (CLO). The $75 million issuance was completed on the Avalanche blockchain and is designed to fund a credit facility for Arch Lending, a consumer lending platform backed by Galaxy Ventures.
According to the company, the transaction is anchored by a $50 million investment from Grove, an institutional credit protocol within the Sky ecosystem, previously known as MakerDAO. The CLO provides capital for an uncommitted lending facility extended to Arch Lending, which originates consumer loans that are overcollateralized with crypto assets such as bitcoin and ether.
Galaxy said proceeds from the CLO are being used to gradually acquire loans under the facility. About $75 million has been financed so far, with the structure designed to scale up to $200 million as new loans are originated. The CLO includes a senior tranche offering a coupon of SOFR plus 570 basis points and has an initial maturity set for December 2026.
Chris Ferraro, Galaxy’s President and Chief Investment Officer, described the transaction as a milestone for the firm. He said the deal brings together Galaxy’s capabilities in debt capital markets, blockchain infrastructure, and asset management, while offering institutional investors a more efficient and transparent way to access credit markets through onchain execution.
The debt tranches were issued and tokenized on Avalanche by INX and are expected to be listed on INX’s alternative trading system, which operates as a regulated venue for qualified investors. Anchorage Digital Bank is serving as bond trustee and qualified custodian, while Galaxy’s Atlas Settlement Network is acting as collateral and administrative agent, enabling real-time monitoring and onchain settlement.
To further support transparency, Galaxy partnered with data verification firm Accountable to provide a dashboard offering continuous visibility into loan performance and collateral levels.
The tokenized CLO comes as Galaxy continues to diversify its business. After Bitcoin’s fourth halving in April 2024 reduced mining rewards, the firm has increased its focus on high-performance computing and artificial intelligence infrastructure. In October 2025, Galaxy secured a $460 million strategic investment to convert its Helios campus in Texas into an AI data center hub for CoreWeave.
Separately, Galaxy has been exploring potential partnerships with prediction market platforms Polymarket and Kalshi. According to Bloomberg, the firm has already conducted limited liquidity provisioning tests and is evaluating broader market-making opportunities on those platforms.
