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.
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