Galaxy Announces Initial Closing of Debut Tokenized CLO at $75 Million

Executive Summary

• Galaxy Digital announced the initial closing of its debut tokenized CLO, “Galaxy CLO 2025‑1,” with an anchor allocation of approximately $50 million from Grove.
• The CLO is being used to fund an uncommitted credit facility for Arch Lending and has financed about $75 million of loans to date, with a potential scaling up to a $200 million limit.
• Tokens representing the debt tranches were issued on the Avalanche blockchain by INX and are slated for listing on INX’s ATS platform; senior tranche carries a coupon of SOFR + 570 bps and an initial maturity of December 2026 with monthly distributions.

Key Details

• Anchor Investor: Grove (institutional‑grade credit infrastructure protocol) contributed ~​$50 million.
• Total Financing to Date: Approximately $75 million of loans under the Arch Lending facility have been purchased using CLO proceeds.
• Maximum Capacity: CLO may scale up to a $200 million limit as additional loans are originated.
• Tokenization Platform: Debt tranches tokenized on Avalanche blockchain by INX; tokens to be listed on INX’s ATS (a subsidiary of Republic).
• Coupon & Maturity: Senior tranche coupon set at SOFR + 570 bps; initial maturity scheduled for December 2026 with monthly cash‑flow distributions.
• Purpose: Provide liquidity to purchase outstanding loans under Arch Lending’s credit facility and support Galaxy’s broader lending and asset‑management strategy.
• Service Providers:
• Bond trustee & qualified custodian – Anchorage Digital Bank (also collateral and administrative agent).
• Fund administration – NAV Consulting, Inc.
• Real‑time data verification – Accountable platform for on‑chain/off‑chain asset transparency.
• Strategic Rationale: Demonstrates a “blueprint” for institutional participation in on‑chain credit markets, combining traditional securitization structures with blockchain efficiency, transparency, and secondary‑market liquidity.

Notable Quotes

“We are pleased to have leveraged Galaxy's diversified business model to execute this first-of-its-kind transaction,” – Chris Ferraro, President & Chief Investment Officer, Galaxy Digital.

“Anchoring Galaxy's debut tokenized CLO underscores Grove's role in enabling institutional‑grade credit to be issued and allocated onchain,” – Sam Paderewski, Co‑Founder, Grove Labs.