Grove and Galaxy Digital enter into $500 million warehousing credit agreement
Institutional-grade credit infrastructure agreement Grove and Galaxy Digital recently announced that they have reached a $500 million warehouse loan arrangement to provide financial support for institutional loans collateralized by digital assets. A warehouse loan is a financing model whereby a loan originator obtains a line of credit to fund its lending operations. Under this model, the originator is responsible for underwriting and originating the loans, while the warehousing lender provides funds secured by a loan portfolio. In this cooperation, Galaxy Digital serves as the loan originator and service provider, responsible for the underwriting and management of institutional loans and the disposal of digital asset collateral. Grove serves as a warehousing lender, providing USDS stablecoin capital through a dedicated lending tool. Under the arrangement, the facility will only accept Bitcoin and Ethereum (including native pledged and liquid pledged Ethereum) as eligible collateral, and will be held by qualified custodians Anchorage Digital and BitGo. The underlying loans are all over-collateralized, the loan-to-value ratio is continuously monitored by Chronicle price data sources, and there is a concentration limit, for example, Ethereum-collateralized loans do not exceed half of the total limit. This cooperation builds on the existing relationship between the two parties. In December 2025, Grove participated in Galaxy’s first tokenized loan-backed bond for US$50 million. Unlike previous investments in the packaged loan portfolio, the new warehouse credit facility moves Grove's involvement further forward, directly funding the issuance of new institutional loans to Galaxy.