Galaxy Secures $500M Warehouse Lending Facility from Grove for Crypto-Backed Loans

Galaxy Digital has secured a $500 million warehouse lending facility from Grove to expand its institutional crypto-backed lending business.

The agreement marks another step in the adoption of traditional credit structures within digital asset markets, as Galaxy will use the capital provided by Grove to originate institutional loans backed by Bitcoin (BTC) and Ether (ETH).

The warehouse lending model is commonly used in traditional finance and provides lenders with lines of credit to finance loan origination before those assets are packaged or refinanced.

The facility includes several institutional risk controls, such as eligible collateral limited to BTC and ETH, including natively staked and liquid-staked ETH, held by qualified custodians Anchorage Digital and BitGo.