Galaxy Announces Initial Closing of Debut Tokenized CLO at $75 Million

Galaxy (NASDAQ: GLXY) closed its debut tokenized CLO, Galaxy CLO 2025-1, with an approximately $50 million anchor allocation from Grove and $75 million financed to date.

Rhea-AI Summary

Galaxy (NASDAQ: GLXY) closed its debut tokenized CLO, Galaxy CLO 2025-1, with an approximately $50 million anchor allocation from Grove and $75 million financed to date. The CLO is tokenized on the Avalanche blockchain, issued by INX with expected listing on INX's ATS, carries a senior coupon of SOFR +570 bps, and has an initial maturity of December 2026. The vehicle may scale up to a $200 million limit and will support Galaxy's lending to Arch Lending with monthly distributions.

Positive

• $50M anchor allocation from Grove
• $75M financed to date
• Structurally scalable up to $200M capacity
• Tokenized on Avalanche enabling instant settlement and transparency

Negative

• Initial maturity is short-term: December 2026
• High senior coupon at SOFR +570 bps
• Facility is uncommitted, raising capacity and rollover risk

Argus Jan 15 session

+13.48% close to close Open Argus

Details

News Market Reaction – GLXY

In the Jan 15 session, GLXY gained 13.48%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock surged +13.5% in the session following this news. A strong positive reaction aligns with G...

Analysis

The stock surged +13.5% in the session following this news. A strong positive reaction aligns with Galaxy’s push into tokenized and onchain credit products. The debut tokenized CLO with a $75 million initial closing and up to $200 million capacity fits a pattern of structural innovation seen in prior tokenization and staking initiatives, though earlier positive news sometimes met with mixed price follow-through. With price up 5.11% on elevated volume of 8,131,809 shares and trading above the 200-day MA, investors focused on the potential scalability of Galaxy’s lending and asset-management platform.

Key Figures

Initial CLO closing: $75 million Anchor allocation: $50 million Credit facility financed: $75 million +5 more

Initial CLO closing

$75 million

Debut tokenized CLO Galaxy CLO 2025-1 initial closing size

Anchor allocation

$50 million

Allocation from Grove as anchor investor in the CLO

Credit facility financed

$75 million

Loans purchased under Arch credit facility financed to date

CLO maximum size

$200 million

Maximum scale of Galaxy CLO 2025-1 as loans are originated

Senior coupon spread

SOFR + 570 bps

Coupon on senior CLO debt tranches, subject to transaction documents

CLO maturity

December 2026

Stated initial maturity date of the CLO

Distribution frequency

Monthly

Frequency of CLO distributions to investors

Price move pre-news

5.11%

GLXY 24h price change ahead of/around publication

Historical Context

5 past events · Latest: Dec 23

5 events

1. Dec 23

   Venture investment

   24h Move

   -0.1%

   Galaxy Ventures participated in Architect’s $35M Series A financing.

2. Dec 16

   Portfolio funding

   24h Move

   -0.9%

   Galaxy Interactive joined an oversubscribed Series C over $100M for Last Energy.

3. Dec 15

   Crypto ETP launch

   24h Move

   -8.3%

   Invesco and Galaxy launched the Invesco Galaxy Solana ETP (QSOL).

4. Dec 10

   Tokenization partnership

   24h Move

   +0.2%

   State Street and Galaxy announced a tokenized private liquidity fund with 24/7 onchain liquidity.

5. Dec 04

   Staking acquisition

   24h Move

   +2.9%

   Galaxy acquired Alluvial Finance and became development company for Liquid Collective.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

collateralized loan obligation, tokenized, onchain, overcollateralized, +4 more

8 terms

collateralized loan obligation financial

"a new-issue collateralized loan obligation (CLO) that is tokenized"

A collateralized loan obligation (CLO) is a financial product that bundles many corporate loans into a single pool and then sells pieces of that pool to investors, with each piece offering different levels of risk and return. Think of it like a large box of varied loans sliced into portions so investors can choose higher safety with lower yield or higher reward with more risk; CLO performance matters because it concentrates credit and interest-rate risk and affects income stability for holders.

tokenized technical

"a new-issue collateralized loan obligation (CLO) that is tokenized on the Avalanche blockchain"

Tokenized means converting a real-world asset, like property, artwork, or stocks, into digital tokens stored on a computer network. This process makes it easier to buy, sell, or transfer small parts of the asset quickly and securely, much like dividing a property into many tiny pieces that can be traded individually. For investors, tokenization can increase access, liquidity, and flexibility in managing their investments.

onchain technical

"participation in onchain credit markets"

"Onchain" describes activities, transactions, or data that happen directly on a blockchain, which is a digital ledger that records information transparently and securely. For investors, onchain activities provide real-time insights into how assets are moving and how networks are functioning, helping them make more informed decisions. Think of it as watching transactions happen live on a public record, similar to seeing a receipt posted online immediately after a purchase.

overcollateralized financial

"offers consumer loans overcollateralized with Bitcoin, Ethereum, and other digital assets"

Overcollateralized means a borrower has pledged assets worth more than the amount they owe, creating a built-in safety cushion for lenders or bondholders. For investors this matters because the extra collateral lowers the risk of loss if the borrower defaults—like putting down a larger down payment on a house—often translating into higher recovery prospects and sometimes lower returns compared with unsecured or lightly secured debt.

basis points financial

"The CLO's terms include a senior coupon of SOFR +570 bps"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

sofr financial

"The CLO's terms include a senior coupon of SOFR +570 bps"

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

ats platform financial

"The tokens are expected to be listed on INX's ATS platform"

An ATS platform is an electronic private trading venue that matches buyers and sellers of securities outside the main public exchanges. It matters to investors because it can change how easily shares are bought or sold, the speed and cost of execution, and where prices are discovered—think of it as a private marketplace or shopping mall that operates alongside the public market, offering alternative places for trades to occur.

custodian financial

"Anchorage Digital Bank serves as the bond trustee and qualified custodian"

A custodian is a financial institution that holds and safeguards an investor's assets—such as stocks, bonds, or cash—and records transactions on the investor's behalf. Think of it as a trusted caretaker or safe-deposit box for investments; it helps prevent loss or theft, handles paperwork and transfers, and provides transparency and regulatory checks, so investors can focus on decisions rather than the mechanics or security of asset storage.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Grove provides approximately $50 million allocation as anchor investor

Tokenized CLO is among the first of its kind establishing a new model for institutional participation in onchain credit markets

NEW YORK, Jan. 15, 2026 /PRNewswire/ - Galaxy Digital Inc. (NASDAQ: GLXY) (TSX: GLXY) ("Galaxy" or "the Company") today announced the successful closing of Galaxy CLO 2025-1, a new-issue collateralized loan obligation (CLO) that is tokenized on the Avalanche blockchain. The CLO will be used to support Galaxy's lending activities and represents Galaxy's first CLO issuance.

The transaction closed with an approximately $50 million anchor allocation from Grove, an institutional-grade credit infrastructure protocol within the Sky ecosystem (formerly MakerDAO). Grove was incubated by Grove Labs, a subsidiary of Steakhouse Financial, which brings deep experience in credit structuring, risk management, and capital formation across both traditional finance and decentralized markets.

"We are pleased to have leveraged Galaxy's diversified business model to execute this first-of-its-kind transaction," said Chris Ferraro, President and Chief Investment Officer at Galaxy. "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."

The CLO is financing an uncommitted credit facility provided to Arch Lending, a leading crypto lending platform backed by Galaxy Ventures that offers consumer loans overcollateralized with Bitcoin, Ethereum, and other digital assets. Proceeds from the CLO are being used to progressively purchase outstanding loans under the Arch credit facility, with approximately $75 million financed to date. As additional loans are originated under the credit facility, the CLO may scale accordingly up to a $200 million limit.

The CLO reflects Galaxy's strategy to evolve its lending and asset management capabilities  through the debt capital markets by scaling loan originations through a familiar, institutional framework. By leveraging Galaxy's core strengths as a lender and fiduciary, this transaction offers as a blueprint for capital-efficient lending and provides investors access to Galaxy's ability to structure and issue innovative credit products.

"This transaction marks another meaningful step forward for onchain credit, demonstrating how familiar securitization structures can be brought onchain without compromising institutional standards," said Sam Paderewski, Co-Founder of Grove Labs. "Anchoring Galaxy's debut tokenized CLO underscores Grove's role in enabling institutional-grade credit to be issued and allocated onchain, and we're excited to partner with Galaxy and Avalanche to help advance the convergence of traditional credit markets and blockchain-based infrastructure."

The CLO's debt tranches were issued and tokenized on the Avalanche blockchain by INX, enabling low-cost, efficient trading. The tokens are expected to be listed on INX's ATS platform, a wholly owned subsidiary of Republic, offering quality market access for qualified investors. The CLO's terms include a senior coupon of SOFR +570 bps, subject to the terms of the governing transaction documents. The stated initial maturity is December 2026, with distributions to be paid out monthly.

By tokenizing the CLO, Galaxy has taken a major step in bringing private credit onchain, unlocking the potential for instant settlement, enhanced structural transparency, the potential for improved secondary-market liquidity, and greater collateral efficiency.

Galaxy's Lending and Digital Infrastructure teams structured and tokenized the CLO offering, respectively, while Galaxy Asset Management is issuing and managing the CLO. Anchorage Digital Bank serves as the bond trustee and qualified custodian. Leveraging its Atlas Settlement Network, Anchorage Digital acts as the collateral agent and administrative agent, providing the critical infrastructure for real-time collateral monitoring and secure onchain settlement throughout the lifecycle of the transaction. NAV Consulting, Inc. will be providing Fund Administration services for the product.

In addition, Galaxy partnered with Accountable, a real-time data verification platform for both on-chain and off-chain assets, providing continuous transparency into the performance and collateralization of underlying loans through an interactive, verifiable dashboard. This level of real-time visibility offers investors a clearer understanding of credit risk, helping address the information gaps that have historically contributed to dislocations in credit markets.

About Galaxy

Galaxy Digital Inc. (Nasdaq/TSX: GLXY) is a global leader in digital assets and data center infrastructure, delivering solutions that accelerate progress in finance and artificial intelligence. Our digital assets platform offers institutional access to trading, advisory, asset management, staking, self-custody, and tokenization technology. In addition, we develop and operate cutting-edge data center infrastructure to power AI and high-performance computing workloads. Our 800 MW Helios campus in Texas, which has an additional 2.7 GW of power under study, positions Galaxy among the largest and fastest-growing data center developments in North America. The Company is headquartered in New York City, with offices across North America, Europe, the Middle East, and Asia. Additional information about Galaxy's businesses and products is available on www.galaxy.com.

Disclaimers and Additional Information

The TSX has not approved or disapproved of the information contained herein.

CAUTION ABOUT FORWARD-LOOKING STATEMENTS
The information in this document may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended and "forward-looking information" under Canadian securities laws (collectively, "forward-looking statements"). Our forward-looking statements include, but are not limited to, statements regarding our or our management team's expectations, hopes, beliefs, intentions or strategies regarding the future. Statements that are not historical facts, including statements about onchain business, are forward-looking statements. In addition, any statements that refer to estimates, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this document are based on our current expectations and beliefs concerning future developments and their potential effects on us taking into account information currently available to us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks include, but are not limited to: (1) risks related to our blockchain infrastructure and staking business; (2) any delay or failure in successfully integrating the acquired company; (3) changes in applicable laws or regulations; (4) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (5) changes or events that impact the cryptocurrency and AI/HPC industry, including potential regulation, that are out of our control; (6) the risk that our business will not grow in line with our expectations or continue on its current trajectory; (7) the possibility that our addressable market is smaller than we have anticipated and/or that we may not gain share of it; (8) any delay or failure to consummate the business mandates or achieve its business pipeline goals; (9) liquidity or economic conditions impacting our business; (10) technological challenges, cyber incidents or exploits; and (11) those other risks contained in filings we make with the Securities and Exchange Commission (the "SEC") from time to time, including in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, filed with the SEC on November 10, 2025, and available on Galaxy's profile at www.sec.gov/edgar (our "Form 10-Q").  Factors that could cause actual results to differ materially from those described in such forward-looking statements include, but are not limited to, a decline in the digital asset market or general economic conditions; a delay or failure in developing infrastructure for our business or our businesses achieving our mandates; delays in integration of the acquired business;; and changes in applicable law or regulation and adverse regulatory developments. Should one or more of these risks or uncertainties materialize, they could cause our actual results to differ materially from the forward-looking statements. Except as required by law, we assume no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements. You should not take any statement regarding past trends or activities as a representation that the trends or activities will continue in the future. Accordingly, you should not put undue reliance on these statements. 

©Copyright Galaxy Digital 2026. All rights reserved. 

 

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SOURCE Galaxy Digital Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Galaxy (GLXY) announce on January 15, 2026 about a tokenized CLO?

Galaxy announced the closing of Galaxy CLO 2025-1, a tokenized CLO with $75M financed to date and an anchor $50M allocation from Grove.

How large can Galaxy CLO 2025-1 scale for GLXY investors?

The CLO may scale up to a $200M limit as additional loans are originated under the credit facility.

What coupon and maturity does the GLXY tokenized CLO carry?

The CLO's senior tranche carries a coupon of SOFR +570 bps with an initial maturity of December 2026.

Which blockchain and trading venue are used for Galaxy's tokenized CLO (GLXY)?

Debt tranches were tokenized on the Avalanche blockchain by INX and are expected to list on INX's ATS platform.

What borrower does the GLXY CLO finance and how are proceeds used?

Proceeds finance an uncommitted credit facility to Arch Lending, used to progressively purchase outstanding loans under that facility.

What operational partners support Galaxy's tokenized CLO (GLXY)?

Anchorage Digital serves as bond trustee and collateral agent; NAV Consulting provides fund administration; Accountable supplies real-time verification.