Galaxy Digital issues its first on-chain tokenized loan certificate on Avalanche, raising over $200 million in funding

SignatureVerifier · 2026-01-15T12:20:11+00:00

Galaxy Digital launches tokenized collateralized loan certificate Galaxy CLO 2025-1 on the Avalanche blockchain, aiming to provide credit support for Arch Lending with a financing scale of $75 million, with plans to expand to $200 million. This move enhances settlement speed, transparency, and liquidity, promoting the Web3 transformation of traditional financial products.

SignatureVerifier

2026-01-15 12:20:11

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【Crypto World】Galaxy Digital has launched an innovative product on the Avalanche blockchain — Galaxy CLO 2025-1, the first tokenized collateralized loan obligation. The anchored funding for this transaction comes from the credit protocol Grove within the Sky ecosystem, with a scale of $50 million.

The goal of this product is to provide credit financing support for Arch Lending. Currently, the project has completed $75 million in financing, and the plan is to expand to $200 million. The overall design is straightforward — by tokenizing institutional private credit onto the chain, what are the benefits? First, faster settlement speeds, no need to wait; second, increased transparency, on-chain data is traceable; third, better liquidity, and increased market participation. This approach of Web3-ifying traditional financial products is gradually being implemented within the Avalanche ecosystem.

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CafeMinor

· 9h ago

Tokenized loan certificates sound good, but can these $200 million really be invested? I still feel that there are risks in the institutional private credit chain on the blockchain...

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ForkPrince

· 9h ago

Really, it's another traditional finance chain transfer. We've seen this routine so many times... But tokenized certificates are indeed quite interesting. --- $200 million? Wow, Galaxy Digital wants to play big this time. --- Good liquidity sounds nice, but I'm just worried it's another new trick where institutions cut retail investors. --- Sky ecosystem is making moves, Avalanche is also quite quick... Let's see how long it can last. --- Fast settlement speed and high transparency, I believe in that, but will so many people really buy this stuff? Or is it just big players banding together? --- $50 million to $200 million... That's quite a appetite. Who will take the bait? --- Tokenized loan certificates sound high-end, but ultimately it's about attracting institutional money, right? --- Avalanche has been very active lately. It feels like this chain is seriously building its ecosystem, unlike some chains that only hype concepts every day.

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ZKProofster

· 9h ago

tbh tokenized credit instruments sound good on paper until you realize who actually bears the liquidation risk... avalanche's throughput doesn't magically solve the underlying protocol assumptions, and grove's implementation details matter way more than the marketing around "trustless" settlement

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FlashLoanLarry

· 9h ago

Really? Galaxy Digital is starting to play with tokenized loans? This means Avalanche is really about to take off. --- It's another case of traditional finance going on-chain. How long it can last remains to be seen. --- Wait, from 50 million anchored funds to 200 million? That multiplier is a bit exaggerated. --- Fast on-chain settlement speed and high transparency, I believe, but what about the risks? Is anyone discussing this? --- Grove + Arch Lending + Galaxy Digital, this combination definitely fits within the Sky ecosystem. --- Tokenized loan certificates sound good, but whether they can be practically used depends on market acceptance. --- Avalanche is coming up with new tricks again. Where is the ceiling for DeFi? --- I just want to know if this CLO will finally become a cash machine for some big players.

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