Galaxy Digital issues $75M tokenized CLO on Avalanche

Cryptocurrency financial services firm Galaxy Digital has issued a $75 million tokenized collateralized loan obligation (CLO) on the Avalanche blockchain, The Block reported. A CLO is a type of asset-backed security issued by financial institutions and backed by a pool of corporate loans. Galaxy Digital plans to use the proceeds to provide loans to the crypto lending platform Arch, with the potential to increase the loan facility to a maximum of $200 million. Digital securities and crypto trading platform INX managed the asset tokenization, while crypto bank Anchorage Digital is serving as the asset custodian.