Galaxy Digital has completed its first blockchain-based loan deal, bringing private credit onto public blockchain infrastructure. The transaction, issued on Avalanche, has already financed around $75 million in loans.
The deal, called Galaxy CLO 2025-1, is backed by a $50 million investment from Grove, a credit protocol linked to the Sky ecosystem. The structure supports loans issued by Arch Lending, a Galaxy-backed platform offering crypto-backed consumer loans.
Funds from the CLO are used to purchase loans secured by Bitcoin and Ether as they are created. The program can expand to $200 million over time.
The bonds were issued on-chain by INX and are expected to trade among approved investors. Galaxy said blockchain technology improves transparency, settlement speed and monitoring. Anchorage Digital acts as custodian, while investors can track performance and collateral in real time.
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