Galaxy Digital Closes $75 Million Tokenized CLO on Avalanche

Galaxy Digital announced the closing of its first tokenized Collateralized Loan Obligation (CLO), Galaxy CLO 2025-1, issued on the Avalanche blockchain, financing approximately $75 million in loans. The transaction was anchored by a $50 million allocation from Grove, an institutional credit protocol in the Sky ecosystem. Galaxy stated this move leverages blockchain technology to bring greater efficiency and transparency to institutional engagement in credit markets. The CLO supports Galaxy's lending operations via an uncommitted credit facility extended to Arch Lending, a Galaxy Ventures-backed platform that issues consumer loans overcollateralized by Bitcoin and Ether. The funds buy these loans as they are created, with the program potentially scaling to $200 million. INX issued the CLO's bonds and tokenized them for listing on its platform for approved investors. Anchorage Digital Bank serves as the trustee and custodian, tracking settlements in real-time, while Accountable provides continuous monitoring of loan performance and collateral.

(Source：Cointelegraph)