Key Takeaways
- • Galaxy has closed Galaxy CLO 2025-1, a $75 million new-issue collateralized loan obligation, marking the firm's first CLO issuance and its first step into debt capital markets for its lending business.
- • Grove anchored the debut with a $50 million allocation, building on its initial $250 million deployment into tokenized real-world assets on Avalanche.
- • The CLO's debt tranches were issued and tokenized on Avalanche and listed on INX's platform for qualified investors, with the structure offering instant settlement, structural transparency, and improved secondary liquidity.
- • Grove selected Avalanche earlier in 2026 as a core partner platform for its institutional credit roadmap, citing predictable settlement and low fees.
Summary
Galaxy has closed Galaxy CLO 2025-1, a new-issue collateralized loan obligation with a $75 million debut issuance. The transaction is Galaxy's first CLO and will be used to support the company's lending activities. According to the announcement, the deal is intended to evolve Galaxy's lending and asset management capabilities through debt capital markets, scaling loan originations and giving investors access to credit products through a familiar institutional framework.
The CLO's debt tranches were issued and tokenized on Avalanche, and the tokens are listed on INX's platform, offering market access for qualified investors. The publisher states that onchain execution introduces the potential for instant settlement, full structural transparency, improved secondary-market liquidity and greater collateral efficiency.
Grove, a tokenized real-world asset strategy, anchors the debut with a $50 million allocation. The commitment builds on Grove's initial $250 million deployment into tokenized RWAs on Avalanche. Grove selected Avalanche earlier this year as a core partner platform for its institutional credit roadmap, citing predictable settlement, low fees and performance characteristics suited to programmatic capital operations. Sam Paderewski, Co-Founder at Grove Labs, said the transaction demonstrates "how familiar securitization structures can be brought onchain without compromising institutional standards."
The announcement situates the deal within a broader push to tokenize asset-backed finance, which it estimates at $6.1 trillion today with a total addressable market above $20 trillion. The publisher argues that smart contracts can automate reporting and compliance monitoring, while stablecoin-based settlement can speed funding and repayment cycles. The article also cites existing Avalanche deployments, including Janus Henderson's Anemoy funds issued via Centrifuge, Apollo's tokenized feeder into its ACRED fund, and KKR's tokenized exposure to its Health Care Strategic Growth Fund II. These figures are as stated by the publisher, and the article is promotional in nature.
The CLO's debt tranches were issued and tokenized on Avalanche, and the tokens are listed on INX's platform, offering market access for qualified investors. The publisher states that onchain execution introduces the potential for instant settlement, full structural transparency, improved secondary-market liquidity and greater collateral efficiency.
Grove, a tokenized real-world asset strategy, anchors the debut with a $50 million allocation. The commitment builds on Grove's initial $250 million deployment into tokenized RWAs on Avalanche. Grove selected Avalanche earlier this year as a core partner platform for its institutional credit roadmap, citing predictable settlement, low fees and performance characteristics suited to programmatic capital operations. Sam Paderewski, Co-Founder at Grove Labs, said the transaction demonstrates "how familiar securitization structures can be brought onchain without compromising institutional standards."
The announcement situates the deal within a broader push to tokenize asset-backed finance, which it estimates at $6.1 trillion today with a total addressable market above $20 trillion. The publisher argues that smart contracts can automate reporting and compliance monitoring, while stablecoin-based settlement can speed funding and repayment cycles. The article also cites existing Avalanche deployments, including Janus Henderson's Anemoy funds issued via Centrifuge, Apollo's tokenized feeder into its ACRED fund, and KKR's tokenized exposure to its Health Care Strategic Growth Fund II. These figures are as stated by the publisher, and the article is promotional in nature.
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