Galaxy Digital unveils $75M tokenized CLO on Avalanche

Galaxy Digital completed a $75M tokenized CLO on Avalanche, anchored by Grove’s $50M. The deal supports crypto-backed loans, enables secondary trading, and advances onchain institutional credit.

Galaxy Digital has finalized a $75 million tokenized collateralized loan obligation (CLO) on the Avalanche blockchain, with Grove contributing a $50 million anchor investment. The CLO supports Arch Lending’s crypto-backed consumer loans, secured by assets like bitcoin and ether, and has the potential to scale up to $200 million as new loans are originated. INX tokenized the debt tranches, making them available for secondary trading on its ATS platform, which offers qualified investors instant settlement and enhanced liquidity. Anchorage Digital Bank acts as bond trustee and custodian, while Galaxy’s Atlas Settlement Network provides real-time monitoring and onchain settlement. This transaction marks a major milestone for institutional structured credit moving onchain, leveraging Avalanche’s infrastructure for greater efficiency, transparency, and programmability. It aligns with Galaxy’s broader strategy to expand its asset management and digital infrastructure, highlighting the growing convergence of traditional finance and blockchain technology.