Galaxy Digital Launches First Tokenized CLO on Avalanche

Galaxy Digital has closed its first-ever collateralized loan obligation, tokenizing the entire structure on the Avalanche blockchain. The CLO, dubbed Galaxy  collateralized loan obligation (CLO) 2025-1, marks a significant milestone in bringing traditional credit instruments to decentralized infrastructure.

Grove, an institutional credit protocol within the Sky ecosystem, anchored the transaction with an approximately $50 million allocation. The protocol was incubated by Grove Labs, a subsidiary of Steakhouse Financial with expertise in credit structuring across traditional and decentralized markets.

Tokenizing the CLO on @avax unlocks the potential for instant settlement, full structural transparency, improved secondary-market liquidity, and greater collateral efficiency – without compromising institutional standards.

The CLO finances a credit facility for @ArchLending and…

— Galaxy (@galaxyhq) January 15, 2026

The CLO finances an uncommitted credit facility provided to Arch Lending, a crypto lending platform backed by Galaxy Ventures. Arch offers consumer loans overcollateralized with Bitcoin, Ethereum, and other digital assets.

Proceeds from the CLO are progressively purchasing outstanding loans under the Arch credit facility. Approximately $75 million has been financed to date, with the structure able to scale up to $200 million as new loans originate.

Galaxy’s Institutional Framework Meets Blockchain Infrastructure

Chris Ferraro, President and Chief Investment Officer at Galaxy, called the transaction “first-of-its-kind.” He noted the company leveraged strengths in debt capital markets, blockchain technology, and asset management to execute the deal.

The CLO’s debt tranches were issued and tokenized on Avalanche by INX. The tokens are expected to be listed on INX’s ATS platform, a subsidiary of Republic, providing market access for qualified investors.

Terms include a senior coupon of SOFR plus 570 basis points. The stated initial maturity is December 2026, with monthly distributions to investors.

Sam Paderewski, Co-Founder of Grove Labs, called the transaction a meaningful step for onchain credit. He noted it brings familiar securitization structures onchain without compromising institutional standards.

Galaxy’s Lending and Digital Infrastructure teams structured and tokenized the offering. Galaxy Asset Management is issuing and managing the CLO.

Anchorage Digital Bank serves as bond trustee and qualified custodian. Through its Atlas Settlement Network, Anchorage acts as collateral agent and administrative agent.

The bank provides infrastructure for real-time collateral monitoring and secure onchain settlement throughout the transaction lifecycle. NAV Consulting, Inc. handles fund administration services.

Real-Time Transparency and Middle East Expansion

Galaxy partnered with Accountable, a real-time data verification platform for on-chain and off-chain assets. The platform provides continuous transparency into loan performance and collateralization through an interactive dashboard.

Galaxy is officially expanding into Abu Dhabi.

Today, we announced our new @ADGlobalMarket office, strengthening our global reach and deepening our commitment to one of the world’s most dynamic financial centers.

Read the announcement here: https://t.co/YEw7dZw8ae pic.twitter.com/hifgY2F05J

— Galaxy (@galaxyhq) December 10, 2025

This visibility offers investors clearer understanding of credit risk. It addresses information gaps that have historically contributed to dislocations in credit markets.

Meanwhile, Galaxy recently expanded its presence in the United Arab Emirates. The company opened an office and established a new entity in Abu Dhabi under ADGM’s Registration Authority.

Bouchra Darwazah, a Managing Director at Galaxy, leads the new office. She is responsible for expanding Galaxy’s regional presence by leveraging the firm’s experience and resources.

Mike Novogratz, Founder and CEO of Galaxy, said the milestone paves the way for greater collaboration in the UAE. He noted it unlocks new opportunities and strengthens ADGM’s reputation as a digital asset innovation hub.

Arvind Ramamurthy, ADGM’s Chief Development Market Officer, welcomed Galaxy as a global leader in digital assets. He cited the region’s progressive ecosystem, robust regulatory framework, and world-class infrastructure.

Following this, Darwazah described the Middle East as a rapidly growing financial hub. She noted the region has become particularly influential for Galaxy’s investors, clients, and portfolio companies.

The expansion deepens Galaxy’s long-standing partnerships in the region. It supports the company’s strategy to advance institutional-grade digital asset trading, infrastructure, and innovation worldwide.