Galaxy Digital Sets $200M Limit for Debut Tokenized CLO Offering

Galaxy Digital has completed the initial closing of a tokenized collateralized loan obligation at $75 million. The vehicle, which finances Arch Lending loans, has a stated capacity limit of $200 million.

In a press release dated January 15, Galaxy Digital Inc. (Nasdaq/TSX: GLXY) announced the initial closing of Galaxy CLO 2025-1, a $75 million collateralized loan obligation issued on the Avalanche blockchain.

The transaction was anchored by a $50 million allocation from Grove, an institutional credit protocol within the Sky ecosystem, formerly known as MakerDAO. Grove launched in June last year with a $1 billion commitment to merge traditional financial assets with DeFi.

According to the New York City-based company, the issuance is the first of its kind for the firm and serves to finance an uncommitted credit facility for Arch Lending, a consumer lender backed by Galaxy Ventures. The senior debt tranches carry a coupon of SOFR plus 570 basis points with a stated initial maturity of December 2026.

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Pivoting to institutional finance at Galaxy Digital

The CLO reflects Galaxy’s strategy to scale its lending and asset management activities through debt capital markets, according to the statement. The firm described the transaction as a blueprint for capital-efficient lending, with about $75 million financed so far under Arch Lending’s uncommitted credit facility and room to add assets up to the $200 million cap.

“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 press release “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.”

Sam Paderewski, co-founder of Grove Labs, said the transaction shows how established securitization frameworks can be issued onchain without altering institutional standards, adding that Grove’s participation underscores its role in allocating institutional-grade credit through blockchain infrastructure.

According to the statement, the CLO’s debt tranches were issued and tokenized by INX on the Avalanche blockchain. The tokens are expected to list on INX’s alternative trading system, operated by Republic. Galaxy said its Lending and Digital Infrastructure teams structured and tokenized the transaction, while Galaxy Asset Management is issuing and managing the vehicle.

Other service providers include NAV Consulting, Inc., which is handling fund administration, and Accountable, which provides the data verification dashboard for investor oversight of the underlying Arch Lending loans.

This development occurs as Galaxy Digital diversifies its operations beyond Bitcoin mining. The company’s mining revenue was directly impacted by the 2024 halving, which cut block rewards by 50%.

In October 2025, Galaxy closed a $460 million strategic investment from a leading global asset manager, pricing 12.77 million shares at $36 per share. The firm is utilizing those proceeds to convert its 800 MW Helios campus in Texas into an AI data center hub for CoreWeave, a project expected to generate approximately $1 billion in annual revenue.

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