We're pleased to share that Arch is now supported by Galaxy Digital's debut tokenized Collateralized Loan Obligation (CLO), which successfully closed at $75 million. This partnership represents a significant step forward in our mission to be your financial partners for life, bringing institutional capital markets to Bitcoin-backed lending while maintaining the safety and service standards you've come to expect from us.

What This Means for You

Galaxy CLO 2025-1, tokenized on the Avalanche blockchain, provides Arch with a scalable institutional credit facility that allows us to continue expanding our lending capacity. The purchase finances $75 million of our existing loan book and may scale up to $200 million as we continue serving Bitcoin holders who need liquidity without selling. This adds to our existing capital sources and is a major step forward in institutional capital markets on modern, on-chain rails. 

This structure was designed with your interests in mind. Your Bitcoin remains exactly where it's always been, in qualified custody with the same bankruptcy-remote protections that have defined Arch from day one. We've never rehypothecated client funds, and this partnership doesn't change that commitment. If anything, it strengthens our ability to maintain these standards while serving more clients.

How We Built This Partnership

Grove, an institutional-grade credit infrastructure protocol within the Sky ecosystem (formerly MakerDAO), provided a $50 million anchor allocation to the CLO, purchasing the entire tranche of Class B notes. Galaxy Digital structured and tokenized the offering, with Anchorage Digital Bank serving as bond trustee and qualified custodian.

What we appreciate most about this structure is the transparency. Through Accountable, a real-time verification platform, there's continuous visibility into loan performance and collateralization. This level of openness aligns with how we've always approached our relationship with our clients with clear terms, full transparency and no surprises.

Why This Partnership Matters

We've spent years building Arch to be different from other platforms in this space. We believe Bitcoin holders deserve better than the industry has historically offered with better custody arrangements, better service and better partnership. This transaction with Galaxy validates that approach while giving us the resources to serve you even better.

Here's what this means in practice:

More capacity for you. With institutional backing, we can continue offering same-day or next-day funding to clients who need liquidity without selling their Bitcoin. Whether you're managing unexpected expenses, seizing investment opportunities or simply bridging cash flow.

Continued commitment to safety. Galaxy's confidence in our underwriting and service model reflects the standards we've maintained since launch. We've never lost client funds and our bankruptcy-remote structure ensures your collateral stays protected.

Stronger foundation for the long term. Diversified funding sources mean we can focus on what matters most by being responsive and thoughtful partners who understand that your needs evolve over time.

Our Continued Commitment

As Bitcoin-backed lending continues gaining institutional adoption, we remain focused on what we do best: providing white-glove service with the speed, safety, and transparency you deserve. 

This partnership with Galaxy allows us to do more of what we've always done.

We're grateful for your trust in Arch, and we're excited to continue being your partners for life.

Disclaimer: This article is for informational purposes only and does not constitute investment or tax advice. Cryptocurrency investments are volatile and risky. Always conduct your own research before making investment decisions.