Grove provides approximately $50 million allocation as anchor investor

Tokenized CLO is among the first of its kind establishing a new model for institutional participation in onchain credit markets

NEW YORK, Jan. 15, 2026 /CNW/ - Galaxy Digital Inc. (NASDAQ: GLXY) (TSX: GLXY) ("Galaxy" or "the Company") today announced the successful closing of Galaxy CLO 2025-1, a new-issue collateralized loan obligation (CLO) that is tokenized on the Avalanche blockchain. The CLO will be used to support Galaxy's lending activities and represents Galaxy's first CLO issuance.

The transaction closed with an approximately $50 million anchor allocation from Grove, an institutional-grade credit infrastructure protocol within the Sky ecosystem (formerly MakerDAO). Grove was incubated by Grove Labs, a subsidiary of Steakhouse Financial, which brings deep experience in credit structuring, risk management, and capital formation across both traditional finance and decentralized markets.

"We are pleased to have leveraged Galaxy's diversified business model to execute this first-of-its-kind transaction," said Chris Ferraro, President and Chief Investment Officer at Galaxy. "By uniting our strengths in debt capital markets, blockchain technology, and asset management, we're opening a new avenue for institutional engagement in credit markets—one that benefits from greater efficiency, transparency, and expanded collateral flexibility through onchain execution."

The CLO is financing an uncommitted credit facility provided to Arch Lending, a leading crypto lending platform backed by Galaxy Ventures that offers consumer loans overcollateralized with Bitcoin, Ethereum, and other digital assets. Proceeds from the CLO are being used to progressively purchase outstanding loans under the Arch credit facility, with approximately $75 million financed to date. As additional loans are originated under the credit facility, the CLO may scale accordingly up to a $200 million limit.

The CLO reflects Galaxy's strategy to evolve its lending and asset management capabilities  through the debt capital markets by scaling loan originations through a familiar, institutional framework. By leveraging Galaxy's core strengths as a lender and fiduciary, this transaction offers as a blueprint for capital-efficient lending and provides investors access to Galaxy's ability to structure and issue innovative credit products.

"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 of Grove Labs. "Anchoring Galaxy's debut tokenized CLO underscores Grove's role in enabling institutional-grade credit to be issued and allocated onchain, and we're excited to partner with Galaxy and Avalanche to help advance the convergence of traditional credit markets and blockchain-based infrastructure."

The CLO's debt tranches were issued and tokenized on the Avalanche blockchain by INX, enabling low-cost, efficient trading. The tokens are expected to be listed on INX's ATS platform, a wholly owned subsidiary of Republic, offering quality market access for qualified investors. The CLO's terms include a senior coupon of SOFR +570 bps, subject to the terms of the governing transaction documents. The stated initial maturity is December 2026, with distributions to be paid out monthly.

By tokenizing the CLO, Galaxy has taken a major step in bringing private credit onchain, unlocking the potential for instant settlement, enhanced structural transparency, the potential for improved secondary-market liquidity, and greater collateral efficiency.

Galaxy's Lending and Digital Infrastructure teams structured and tokenized the CLO offering, respectively, while Galaxy Asset Management is issuing and managing the CLO. Anchorage Digital Bank serves as the bond trustee and qualified custodian. Leveraging its Atlas Settlement Network, Anchorage Digital acts as the collateral agent and administrative agent, providing the critical infrastructure for real-time collateral monitoring and secure onchain settlement throughout the lifecycle of the transaction. NAV Consulting, Inc. will be providing Fund Administration services for the product.

In addition, Galaxy partnered with Accountable, a real-time data verification platform for both on-chain and off-chain assets, providing continuous transparency into the performance and collateralization of underlying loans through an interactive, verifiable dashboard. This level of real-time visibility offers investors a clearer understanding of credit risk, helping address the information gaps that have historically contributed to dislocations in credit markets.

About Galaxy

Galaxy Digital Inc. (Nasdaq/TSX: GLXY) is a global leader in digital assets and data center infrastructure, delivering solutions that accelerate progress in finance and artificial intelligence. Our digital assets platform offers institutional access to trading, advisory, asset management, staking, self-custody, and tokenization technology. In addition, we develop and operate cutting-edge data center infrastructure to power AI and high-performance computing workloads. Our 800 MW Helios campus in Texas, which has an additional 2.7 GW of power under study, positions Galaxy among the largest and fastest-growing data center developments in North America. The Company is headquartered in New York City, with offices across North America, Europe, the Middle East, and Asia. Additional information about Galaxy's businesses and products is available on www.galaxy.com.

Disclaimers and Additional Information

The TSX has not approved or disapproved of the information contained herein.

CAUTION ABOUT FORWARD-LOOKING STATEMENTS
The information in this document may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended and "forward-looking information" under Canadian securities laws (collectively, "forward-looking statements"). Our forward-looking statements include, but are not limited to, statements regarding our or our management team's expectations, hopes, beliefs, intentions or strategies regarding the future. Statements that are not historical facts, including statements about onchain business, are forward-looking statements. In addition, any statements that refer to estimates, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this document are based on our current expectations and beliefs concerning future developments and their potential effects on us taking into account information currently available to us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks include, but are not limited to: (1) risks related to our blockchain infrastructure and staking business; (2) any delay or failure in successfully integrating the acquired company; (3) changes in applicable laws or regulations; (4) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (5) changes or events that impact the cryptocurrency and AI/HPC industry, including potential regulation, that are out of our control; (6) the risk that our business will not grow in line with our expectations or continue on its current trajectory; (7) the possibility that our addressable market is smaller than we have anticipated and/or that we may not gain share of it; (8) any delay or failure to consummate the business mandates or achieve its business pipeline goals; (9) liquidity or economic conditions impacting our business; (10) technological challenges, cyber incidents or exploits; and (11) those other risks contained in filings we make with the Securities and Exchange Commission (the "SEC") from time to time, including in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, filed with the SEC on November 10, 2025, and available on Galaxy's profile at www.sec.gov/edgar (our "Form 10-Q").  Factors that could cause actual results to differ materially from those described in such forward-looking statements include, but are not limited to, a decline in the digital asset market or general economic conditions; a delay or failure in developing infrastructure for our business or our businesses achieving our mandates; delays in integration of the acquired business;; and changes in applicable law or regulation and adverse regulatory developments. Should one or more of these risks or uncertainties materialize, they could cause our actual results to differ materially from the forward-looking statements. Except as required by law, we assume no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements. You should not take any statement regarding past trends or activities as a representation that the trends or activities will continue in the future. Accordingly, you should not put undue reliance on these statements. 

©Copyright Galaxy Digital 2026. All rights reserved. 

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SOURCE Galaxy Digital Inc.