Galaxy Digital completed the first tokenized collateralized loan obligation (CLO) on the Avalanche blockchain, raising $75 million in on‑chain capital. The CLO is anchored by a $50 million allocation from Grove, a leading credit‑infrastructure protocol, and is intended to fund up to $200 million of loan purchases through the company’s Arch Lending platform.
Tokenizing the CLO brings several advantages. By recording the obligation on a distributed ledger, Galaxy can offer investors greater transparency, lower settlement costs, and secondary‑market liquidity that is difficult to achieve with traditional paper‑based securitizations. The move also demonstrates the company’s ability to blend its digital‑asset expertise with conventional financial engineering.
The $75 million raised represents 37.5 % of the CLO’s total financing capacity. The proceeds will be used to acquire existing loans under the Arch credit facility, allowing Galaxy to scale its lending book more quickly than through conventional debt or equity. The transaction aligns with the firm’s broader strategy to diversify revenue streams after the Bitcoin halving in April 2024, which prompted a shift away from mining toward digital‑asset services, AI‑driven data centers, and on‑chain credit.
Galaxy’s leadership highlighted the strategic fit of the CLO with its other growth initiatives. Chris Ferraro, President and CIO, said the tokenized structure “unites our strengths in debt capital markets, blockchain technology, and asset management, opening a new avenue for institutional engagement in credit markets.” Sam Paderewski of Grove Labs added that the anchor investment “demonstrates institutional confidence in on‑chain credit and reinforces our partnership with Galaxy.” Meanwhile, CEO Mike Novogratz noted that the company’s expanding Helios data‑center campus in West Texas—now approved for an additional 830 MW—underscores its commitment to AI infrastructure.
Investors responded positively to the dual announcements, viewing the tokenized CLO as a milestone that expands Galaxy’s capital‑raising toolkit and the Helios expansion as evidence of a high‑growth AI platform. The combination of a pioneering on‑chain credit product and a significant data‑center expansion signals that Galaxy is positioning itself to capture multiple emerging markets while reducing reliance on volatile mining revenues.
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