Grove serves as the warehouse lender, financing Galaxy's origination of institutional loans secured by digital assets.

Grove, an institutional-grade credit infrastructure protocol designed to serve as the liquidity engine of onchain finance, today announced a $500 million warehouse lending facility with Galaxy Digital. Grove serves as the warehouse lender, providing capital to finance Galaxy's origination of institutional loans secured by digital assets. The facility deepens a growing relationship between the two firms.

Grove and Galaxy warehouse facility

A warehouse facility is a credit line provided to an originator to help finance its lending business. The originator underwrites and originates loans, while the warehouse lender supplies capital secured against the resulting loan portfolio. Mortgage lenders and auto finance companies have funded their books this way for decades.

The Grove and Galaxy facility applies the same structure to crypto-backed lending. Galaxy is the originator: underwriting loans to institutional clients, taking digital asset collateral, and servicing them through its existing operations. Grove is the warehouse lender, committing USDS capital through a dedicated lending vehicle.

At a glance:

Facility: $500 million
Warehouse lender: Grove
Originator and servicer: Galaxy
Eligible collateral: BTC and ETH, including natively staked and liquid-staked ETH
Qualified custodians: Anchorage Digital and BitGo
Loan profile: Senior secured and fully funded. Original terms of two years or less.
Concentration limits: ETH-backed loans up to 50% of the facility, staked ETH up to 50% of that share
Price feeds: Chronicle, with loan-to-value monitored continuously

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

About Grove

Grove is an institutional-grade credit infrastructure protocol that powers instant liquidity for onchain finance. Grove’s flagship product, Basin, is programmable credit infrastructure designed to provide eligible investors with real-time stablecoin liquidity in connection with approved sale, redemption, transfer, or other liquidity transactions for tokenized real-world assets. Grove is issuer-agnostic, product-conflict-free, and designed to serve as a neutral infrastructure layer for the tokenized asset ecosystem.

To learn more, visit grove.finance, X, and LinkedIn.

About Grove Labs

Grove Labs, a subsidiary of Steakhouse Financial, is a blockchain research and development organization dedicated to architecting the next generation of decentralized credit infrastructure. Co-founded by Mark Phillips, Kevin Chan, and Sam Paderewski, the team has facilitated over $5 billion of onchain capital allocations and brings deep expertise from both traditional and decentralized finance. Grove Labs builds open-source, non-custodial protocols and liquidity solutions that bridge institutional strategies with the DeFi world. Committed to fostering TradFi-DeFi convergence, Grove Labs advances financial innovation through rigorous research, collaborative partnerships, and production-ready software solutions.

About Galaxy

Galaxy Digital Inc. (NASDAQ:GLXY) is a global leader in digital assets and data center infrastructure, delivering solutions that accelerate progress in finance and artificial intelligence. Our digital assets platform offers institutional access to trading, advisory, asset management, staking, self-custody, and tokenization technology. In addition, we develop and operate cutting-edge data center infrastructure to power AI and HPC workloads. Our 1.6 GW Helios campus in Texas positions Galaxy among the largest and fastest-growing data center developers in North America. The Company is headquartered in New York City, with offices across North America, Europe, the Middle East, and Asia. Additional information about Galaxy's businesses and products is available on www.galaxy.com.

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.

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grove@serotonin.co