Galaxy debuts $75 million tokenized CLO on Avalanche to fund Arch Lending facility

Galaxy Digital Inc. announced the initial closing of its first tokenized collateralized loan obligation (CLO), a $75 million issuance on the Avalanche blockchain. This transaction, anchored by a $50 million allocation from Grove, provides capital for an uncommitted credit facility extended to Arch Lending, which originates consumer loans overcollateralized by crypto assets like Bitcoin and Ether. The CLO proceeds are being used to purchase outstanding loans, with capacity to scale up to $200 million. The senior coupon is priced at SOFR +570 bps with a maturity of December 2026. The debt tranches were tokenized by INX and are expected to trade on INX’s ATS platform, offering secondary trading access to qualified investors within a regulated venue. Anchorage Digital Bank serves as the trustee and custodian, while Accountable provides a transparency dashboard for loan performance.

(Source：The Block)