Galaxy Digital has closed its tokenised collateralised loan obligation (CLO) vehicle, securing $75m (£55.9m) of commitments.
The Galaxy CLO 2025-1 marks the firm’s first CLO issuance, with Grove, an institutional-grade credit infrastructure protocol, committing a $50m anchor allocation.
Galaxy said the transaction is “first-of-its-kind” and brings “private credit on-chain”, with the CLO having the potential to scale up to $200m.
Read more: Obra Capital $450m for third CLO
According to Galaxy, the CLO is financing an uncommitted credit facility provided to Arch Lending, a crypto lending platform offering consumer loans overcollateralised with Bitcoin, Ethereum and other digital assets.
“We are pleased to have leveraged Galaxy’s diversified business model to execute this first-of-its-kind transaction,” said Chris Ferraro, president and chief investment officer at Galaxy. “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 on chain execution.”
Read more: Janus Henderson rolls out global CLO targeting US and Europe
Galaxy is a platform that offers solutions accelerating progress in finance and artificial intelligence, with a specialisation in digital assets and data centre infrastructure.
“This transaction marks another meaningful step forward for onchain credit, demonstrating how familiar securitisation structures can be brought onchain without compromising institutional standards,” said Sam Paderewski, co-founder of Grove Labs.
The CLO’s debt tranches were issued and tokenised on the Avalanche blockchain by financial services company INX.
Read more: Janus Henderson CLO ETF surpasses $20bn of assets
