Galaxy Digital has closed its first blockchain-based collateralised loan obligation, bringing private credit fully onchain.
The deal, named Galaxy CLO 2025-1, has financed around $75 million in loans and was issued on the Avalanche blockchain.
The transaction was anchored by a $50 million allocation from Grove, an institutional credit protocol within the Sky ecosystem.
“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,”
Chris Ferraro said.
The tokenised CLO supports Galaxy’s lending operations through a credit facility provided to Arch Lending.
Arch Lending issues consumer loans that are overcollateralised with Bitcoin and Ether.
Galaxy said the programme has the capacity to scale up to $200 million over time.
INX issued the CLO’s bonds onchain and plans to list the tokens on its platform for approved investors.
The senior tranche of the CLO pays interest linked to SOFR plus 5.7% and matures in December 2026.
Anchorage Digital Bank is acting as trustee and custodian, providing real-time collateral and settlement tracking.
Galaxy also partnered with data platform Accountable to allow continuous monitoring of loan performance.
At the time of reporting, Avalanche price was $13.77.