Grove and Galaxy Digital Announce $500 Million Warehouse Lending Facility

Inside the warehouse

The facility is secured at two levels. Grove's financing is secured against the portfolio of loans itself, while each underlying loan is overcollateralized with cryptocurrency pledged by the borrower. Eligible collateral is limited to BTC and ETH, including natively staked and liquid-staked ETH, held with qualified custodians Anchorage Digital and BitGo.

Only loans that meet defined eligibility criteria can enter the portfolio:

• Senior secured and fully funded, with a first-priority security interest in the borrower's pledged cryptocurrency.
• Original terms of no more than two years. No more than 20 percent of the facility can sit in loans with original terms beyond one year, so the book skews short-dated.
• Denominated in dollars or approved stablecoins, with interest paid at least monthly.
• Advance rates are tiered by collateral type and borrower profile.

Concentration limits cap ETH-backed loans at half the facility, and staked ETH at half of that ETH share. Loan-to-value is monitored continuously against independent price feeds from Chronicle.

Grove's role: an evolving partnership with Galaxy

In December of 2025, Grove anchored Galaxy's first tokenized CLO with a $50 million participation. A CLO is a structured credit product similar to a warehouse: a pool of loans bundled together, with debt tranches of varying risk and return sold to finance the portfolio. Buying into a CLO means buying exposure to those loans after they have already been originated, underwritten, and packaged into a tradable form.

This warehouse facility moves Grove one step earlier in that process. Instead of buying an interest in a pool of finished loans, Grove now provides the funding Galaxy uses to originate new loans. The position sits earlier in the credit chain, closer to origination and collateral than a secondary CLO interest.

Why this matters

Galaxy receives committed warehouse capacity to support its institutional crypto-backed lending book. Through the facility, Grove provides warehouse financing to Galaxy, secured against a portfolio of overcollateralized, institutionally underwritten crypto-backed loans that Galaxy originates and services. The structure sits closer to origination and collateral than secondary CLO participation.

For the Sky Ecosystem, the warehouse facility adds term-committed private credit exposure denominated in USDS.

The bigger picture

The Galaxy facility shows what Grove can do as institutional credit infrastructure: structure and deploy committed USDS warehouse financing at institutional scale. The architecture may support additional institutional crypto-backed lending use cases, subject to future facility terms, counterparties, and approvals.

For partnership inquiries: contact@grove.finance

This post is for general information purposes only and does not constitute investment advice or a recommendation or solicitation to buy or sell any investment. It should not be relied upon for accounting, legal, or tax advice. The transactions, facilities, and exposures described involve risk, including possible loss of principal. Performance is not guaranteed, and all terms remain subject to the applicable transaction documentation.