Galaxy closes first $75M blockchain-based loan deal on Avalanche

Galaxy Digital has completed its first tokenized CLO, using blockchain infrastructure to bring private credit and crypto-backed loans onchain.

Galaxy Digital has closed its first tokenized collateralized loan obligation (CLO), bringing private credit onto blockchain infrastructure.

The deal, known as Galaxy CLO 2025-1, is issued on the Avalanche and has financed roughly $75 million in loans so far, according to a Thursday announcement. The transaction is anchored by an approximately $50 million allocation from Grove, an institutional credit protocol within the Sky ecosystem, formerly known as MakerDAO.

“By uniting our strengths in debt capital markets, blockchain technology, and asset management, we're opening a new avenue for institutional engagement in credit markets—one that benefits from greater efficiency, transparency, and expanded collateral flexibility through onchain execution,” Chris Ferraro, president and chief investment officer at Galaxy, said.

Read more