On Thursday, January 15, 2026, financial firm Galaxy Digital announced the successful closing of its first tokenized Collateralized Loan Obligation (CLO). The deal, named Galaxy CLO 2025-1, was executed using blockchain-based loans on the Avalanche network to finance seventy-five million dollars.
According to Chris Ferraro, President of Galaxy, this initiative opens a new avenue for institutional engagement in global private credit markets. Likewise, this milestone allows for benefiting from greater efficiency and transparency through direct execution on the blockchain.
The transaction featured a fifty million dollar anchor investment from Grove, an institutional credit protocol within the industry. These funds are intended to support the lending operations of Arch Lending, a platform that issues consumer loans overcollateralized with digital assets safely.
Thus, the CLO capital is used to purchase these loans as they are created, allowing the program to scale efficiently. Furthermore, it is estimated that this credit line could reach two hundred million dollars in the near future.
On the other hand, the product’s technological structure was fully managed by internal engineering and asset management teams. The CLO bonds were issued by the INX platform, which will facilitate token trading for accredited investors across the market.
Therefore, the safest portion of this debt offers interest linked to the current SOFR rate plus a five point seven percent spread. Nevertheless, monthly payments and the final maturity are scheduled to occur during the month of December of this year.
Is debt tokenization the next logical step for global investment banking?
Likewise, the oversight of collateral and settlements is performed in real-time thanks to Anchorage Digital Bank’s infrastructure. The partnership with the Accountable data platform allows investors to continuously monitor the performance of assets backing the trust.
Consequently, this radical transparency drastically reduces risks of financial opacity that have traditionally plagued secondary debt markets. In this way, the blockchain ecosystem demonstrates its capacity to modernize complex and highly regulated financial instruments.
Moreover, a recent report from Galaxy Research suggests that this breakthrough is only the beginning of a massive transformation. The firm predicts that stablecoins could surpass the transaction volume of the US ACH system by the end of 2026.
It also highlights that the supply of stable digital assets is growing at an annual rate of forty percent, driving institutional adoption. However, the success of these models will depend on the seamless integration between traditional banking rails and the new decentralized digital infrastructure.
Finally, the onchain private credit market represents an unprecedented opportunity to democratize access to sophisticated institutional yields. Galaxy Digital plans to expand its catalog of tokenized financial products to meet the growing demand for operational transparency from clients.
Although the sector is still young, these moves precede a massive migration of capital toward programmable networks that optimize loan security. It is expected that other financial entities will replicate this on-chain execution model during the upcoming fiscal quarters of the year.
