Sidley Represents Grove Foundation in Galaxy Digital’s Debut Tokenized CLO

Sidley represented Grove Foundation in its US$50 million anchor investment in Galaxy Digital Inc.’s inaugural tokenized collateralized loan obligation, Galaxy CLO 2025-1, which has financed approximately US$75 million of loans to date. The CLO has been tokenized on the Avalanche blockchain and is structured to support Galaxy’s lending activities through an uncommitted credit facility extended to Arch Lending. The transaction marks a significant milestone in the tokenization of structured credit products and is designed to scale to US$200 million as additional loans are originated.

This tokenized CLO demonstrates how securitization structures can be brought onchain, enabling institutional-grade credit to be issued and allocated onchain, and illustrates the convergence of traditional credit markets and blockchain-based infrastructure.

The Grove Foundation was represented in this transaction by Sidley’s cross-disciplinary blockchain and digital assets team. It was led by Andrew Sioson, Kate Lashley, and Lilya Tessler, with partners Teresa Wilton Harmon, Christopher Jackson, and associates Alec Silvester (Securities Enforcement and Regulatory) and Neekita Bhatia (Global Finance) also playing a significant role.