Galaxy Digital Lines Up $500M Grove Warehouse Facility to Scale Institutional Crypto-Backed Lending

Galaxy Digital has arranged a $500 million warehouse lending facility with Grove, aiming to grow its institutional crypto-backed lending platform and further import traditional credit structures into digital-asset markets. Under the deal, Grove will supply the funding that allows Galaxy to originate institutional loans secured by digital assets. Galaxy will handle underwriting, servicing and ongoing portfolio management. The facility uses a warehouse lending framework widely used in traditional finance, where a credit line finances loan origination before loans are later packaged or refinanced. Grove’s capital will be deployed through a dedicated lending vehicle funded in USDS, giving Grove exposure to a pool of overcollateralized crypto-backed loans, the companies said. Collateral eligibility is restricted to Bitcoin (BTC) and Ether (ETH), including natively staked and liquid-staked ETH. Assets will be held with qualified custodians Anchorage Digital and BitGo. Risk controls include continuous loan-to-value monitoring using Chronicle price feeds and concentration limits that cap ETH-backed loans at no more than half of the facility. Eligible loans must also meet defined underwriting standards, including senior secured status, original maturities of no more than two years and regular interest payments. The announcement extends an existing partnership. In December 2025, Grove invested $50 million in Galaxy’s first tokenized collateralized loan obligation (CLO). Unlike that transaction, which provided exposure to an existing loan portfolio, the new warehouse facility positions Grove earlier in the credit process by financing the creation of new institutional loans. The firms said the structure could be replicated for additional institutional crypto-backed lending facilities in the future, subject to additional counterparties, approvals and transaction terms.