Galaxy CLO 2025-1 totals $75 million and brings a private credit deal onchain.
Galaxy revealed on Jan. 15 that it has issued its first collateralized loan obligation (CLO) and tokenized the deal on Avalanche, a Layer 1 blockchain with a total value locked (TVL) of over $1.2 billion.
The instrument, dubbed Galaxy CLO 2025-1, totals $75 million and includes a $50 million allocation from Grove, an institutional credit protocol that operates as a Star, or SubDAO, within the Sky Ecosystem.
A CLO is a structured credit product that bundles corporate loans and sells them to investors across different risk tiers. Galaxy said the transaction will support its lending activities.
Avalanche said the CLO’s debt tranches were issued and tokenized on its network and are listed on INX for qualified investors. The network added that tokenization could enable lower-cost trading and faster settlement, while also improving transparency for investors.
“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 at Grove Labs.
Paderewski added that Grove’s investment underscores its focus on supporting onchain tokenized credit products.
The allocation adds to Grove’s activity on Avalanche, according to the announcement. Grove previously deployed $250 million into tokenized real-world assets (RWAs) on the Avalanche network.
The announcement comes as more private credit products move onchain. Avalanche cited other institutional credit products already running on its network, including tokenized funds tied to Janus Henderson’s Anemoy Fund and Apollo’s ACRED.
Private credit remains the largest category in tokenized RWAs, with about $19.1 billion in onchain value, followed by tokenized securities, mainly Treasuries, at roughly $9 billion, according to a December report from RWAio.
AVAX, Avalanche’s native token, was trading around $13.74 on Thursday, down about 6.2% over 24 hours, according to CoinGecko. The token had roughly $388 million in daily trading volume.
Meanwhile, Galaxy (GLXY) shares were up about 13% on Thursday, trading around $31.90, according to Google Finance.