Galaxy Digital closes its first tokenized collateralized loan obligation (CLO), bringing private credit onto blockchain infrastructure

The deal, known as Galaxy CLO 2025‑1, was issued on Avalanche and has financed roughly $75 million in loans so far, according to a Thursday announcement. The transaction is anchored by a $50 million allocation from Grove, an institutional credit protocol within the Sky ecosystem (formerly MakerDAO).

“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,” said Chris Ferraro, president and chief investment officer at Galaxy.

Galaxy said the CLO is designed to support its lending operations through an uncommitted credit facility extended to Arch Lending, a crypto‑lending platform backed by Galaxy Ventures. Arch issues consumer loans that are over‑collateralized with Bitcoin and Ether. Money from the CLO is used to buy these loans as they are created, with the program able to grow to $200 million over time.

Image: Avalanche tweets about Galaxy launching a first‑of‑its‑kind tokenized CLO exclusively on Avalanche

Source: Avalanche

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Galaxy’s tokenized CLO to trade on INX platform

Crypto trading platform INX issued the CLO’s bonds and put them on the blockchain. The tokens are expected to be listed on INX’s platform for approved investors. The safest portion of the CLO pays interest at a rate tied to the Secured Overnight Financing Rate (SOFR) plus 5.7%, matures in December 2026 and makes monthly payments, per the announcement.

Galaxy’s internal teams handled the structuring and blockchain setup, while Galaxy Asset Management oversees the product.

Anchorage Digital Bank acts as trustee and custodian, tracking collateral and settlements in real time using its blockchain infrastructure. Galaxy also partnered with Accountable, a data platform that lets investors continuously monitor loan performance and collateral backing the CLO.

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Stablecoins to overtake ACH payments in 2026: Galaxy

In a recent report, Galaxy Research, the research arm of Galaxy Digital, predicted that stablecoins could handle more transaction volume than the U.S. Automated Clearing House (ACH) system as early as 2026. The firm noted that stablecoins already process more transactions than major card networks like Visa and now account for roughly half of ACH transaction volume.

Galaxy said stablecoin supply has been growing at a 30 %– 40 % annual rate, with transaction activity rising alongside issuance.