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Galaxy Tokenizes First CLO on Avalanche With $50M Grove Allocation

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Galaxy Tokenizes First CLO on Avalanche With $50M Grove Allocation

Galaxy CLO 2025-1 totals $75 million and brings a private credit deal onchain.

Galaxy revealed on Jan. 15 that it has issued its first collateralized loan obligation (CLO) and tokenized the deal on Avalanche, a Layer 1 blockchain with a total value locked (TVL) of over $1.2 billion.

The instrument, dubbed Galaxy CLO 2025-1, totals $75 million and includes a $50 million allocation from Grove, an institutional credit protocol that operates as a Star, or SubDAO, within the Sky Ecosystem.

A CLO is a structured credit product that bundles corporate loans and sells them to investors across different risk tiers. Galaxy said the transaction will support its lending activities.

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Avalanche said the CLO’s debt tranches were issued and tokenized on its network and are listed on INX for qualified investors. The network added that tokenization could enable lower-cost trading and faster settlement, while also improving transparency for investors.

“This transaction marks another meaningful step forward for onchain credit, demonstrating how familiar securitization structures can be brought onchain without compromising institutional standards,” said Sam Paderewski, co-founder at Grove Labs.

Paderewski added that Grove’s investment underscores its focus on supporting onchain tokenized credit products.

The allocation adds to Grove’s activity on Avalanche, according to the announcement. Grove previously deployed $250 million into tokenized real-world assets (RWAs) on the Avalanche network.

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The announcement comes as more private credit products move onchain. Avalanche cited other institutional credit products already running on its network, including tokenized funds tied to Janus Henderson’s Anemoy Fund and Apollo’s ACRED.

Private credit remains the largest category in tokenized RWAs, with about $19.1 billion in onchain value, followed by tokenized securities, mainly Treasuries, at roughly $9 billion, according to a December report from RWAio.

AVAX, Avalanche’s native token, was trading around $13.74 on Thursday, down about 6.2% over 24 hours, according to CoinGecko. The token had roughly $388 million in daily trading volume.

Meanwhile, Galaxy (GLXY) shares were up about 13% on Thursday, trading around $31.90, according to Google Finance.

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Kalshi expands surveillance, enforcement efforts ahead of Super Bowl 60

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Kalshi expands surveillance, enforcement efforts ahead of Super Bowl 60

The Kalshi logo arranged on a laptop in New York, US, on Monday, Feb. 10, 2025.

Gabby Jones | Bloomberg | Getty Images

Kalshi on Thursday announced new initiatives to expand its surveillance and enforcement frameworks as skepticism builds around the booming predictions market space.

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The announcement comes days before Super Bowl 60, which has already drawn more than $160 million in prediction market trading volume, according to Kalshi. The platform and its peers allow users to buy event contracts for outcomes in politics, pop culture, financial markets and sports.

Prediction trades on predetermined outcomes — like, for example, on which companies will air Super Bowl ads on Sunday — have prompted questions of possible insider trading. New York Attorney General Letitia James on Monday issued a warning about what she called “unregulated prediction markets.”

“Being federally regulated means that Kalshi bans market manipulation, insider trading, has limits on the types of markets it lists, runs Know-Your-Customer (KYC) and Anti-Money Laundering (AML) checks on every user before they can trade, and publicly reports all trades to the CFTC daily,” the company said in a release. “Kalshi also spent years building custom prediction market trade surveillance and enforcement systems that are similar to those used in the stock market.

Kalshi said Thursday it has taken further steps, forming an independent surveillance advisory committee, which will provide quarterly analysis to the company’s outside counsel and publish statistics on investigations into suspicious activity on its platform. The company also announced surveillance partnerships with Solidus Labs and the Director of the Wharton Forensic Analytics Lab.

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The prediction market will also now work with the former Under Secretary of the Treasury for Terrorism and Financial Intelligence to advise Kalshi on “market integrity, trading surveillance and financial compliance matters.”

Kalshi lawyer Robert DeNault has also been appointed to the role of Head of Enforcement, where the company said he will work with the advisory committee to identify insider trading and market manipulation.

Lastly, Kalshi said it has created hubs on its website to provide resources for consumers on responsible trading and market integrity.

In a post on X, CEO Tarek Mansour said if the company finds any wrongdoing, the penalties include fines and referrals to the Commodity Futures Trading Commission — which regulates event contracts in the U.S. — and the Department of Justice for prosecution.

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“In the past year, we ran over 200 investigations and froze relevant accounts,” Mansour wrote. “Of these, over a dozen have become active cases and several have been referred to law enforcement.”

Mansour added that Kalshi has based its market surveillance system on those used by the New York Stock Exchange and the Nasdaq, flagging suspicious behavior by running trades through pattern recognition models.

“All industries have bad actors and no system is perfect, Kalshi’s included,” Mansour wrote. “But we are committed to improving daily. Lots of work ahead!”

Disclosure: CNBC has a commercial relationship with Kalshi.

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Liquidations Top $1.3 Billion as BTC Plummets Below $67K, ETH Loses $2K Support

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BTCUSD Feb 5. Source TradingView


Most other altcoins like BNB and XRP have joined the ride south with massive declines of their own.

Bitcoin can’t catch a break in the past several days, marking consecutive multi-month lows, with the latest coming minutes ago at well under $67,000.

The last time the cryptocurrency traded at such low levels was in early November, just as the US presidential elections took place and the country elected the so-called ‘crypto president,’ Donald Trump.

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The past few weeks have been brutal for BTC. It challenged $90,000 just eight days ago, last Wednesday, but the rejection at that level brought unimaginable pain for the market leader and most of the altcoin followers.

Bitcoin first dumped to $81,000 last Thursday, then continued south to under $75,000 during the weekend, but the bears kept the pressure on. The past several hours have been violent as well, with BTC plunging to $66,900 (as of press time). This means that the asset has lost well over $20,000 in just over a week.

BTCUSD Feb 5. Source TradingView
BTCUSD Feb 5. Source TradingView

The altcoins have not been spared. ETH continues with its massive decline, with another 9% daily decline to under $2,000 – its lowest level since last April. BNB has plunged by 10% to $660, while XRP is down by a whopping 15% in the past 24 hours alone to $1.32.

Further losses are evident from the likes of ZEC (-19%), MORPHO (-14%), NEXO (-14%), XMR (-12%), LEO (-12%), SUI (-11%), and many others. As such, it’s no wonder that over-leveraged traders have been harmed severely.

Data from CoinGlass shows that the 24-hour liquidations have rocketed to over $1.3 billion. In the past hour alone, the wrecked positions are up to $350 million. The number of wiped out traders is close to 300,000 daily, with the single-largest position taking place on Aster, which was worth over $11 million.

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Daily Liquidations Data on CoinGlass
Daily Liquidations Data on CoinGlass: February 5
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Uniform Labs’ Multiliquid and Metalayer Launch RWA Redemption Facility on Solana

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Uniform Labs’ Multiliquid and Metalayer Launch RWA Redemption Facility on Solana

Multiliquid and Metalayer Ventures have launched a facility that allows instant redemption (liquidity) for tokenized real-world assets (RWAs) on Solana.

In a press release shared with CryptoNews, the firm said the facility is positioned as the first dedicated vehicle intended to solve one of tokenization’s most persistent challenges: liquidity at redemption.

Raised and managed by Metalayer Ventures with support from Uniform Labs, it is designed to scale over time based on market feedback and performance, offering a blueprint for future redemption-liquidity deployments across tokenized markets.

The RWA Liquidity Gap

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The launch comes as Solana’s tokenized RWA ecosystem surpasses $1 billion in on-chain assets, making it the third-largest blockchain network for tokenization.

Despite rapid growth, much of the RWA market—particularly non-Treasury assets such as private credit, private equity, and real estate—remains structurally illiquid. Redemptions are typically limited to issuer-controlled windows, rather than continuous secondary markets.

This mismatch is becoming more visible even in ostensibly “cash-like” products. The Bank for International Settlements has warned that tokenized money market funds face liquidity mismatches between on-chain instruments and off-chain settlement, a dynamic that could amplify stress during periods of elevated redemption demand.

“Traditional finance has repo markets, prime brokerage, and overnight lending facilities. Tokenized markets have had nothing comparable, until now,” said Will Beeson, founder and CEO of Uniform Labs.

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How the Facility Works

Metalayer Ventures acts as the capital provider, raising and managing the pool of capital that allows instant redemptions. Multiliquid—developed by Uniform Labs—supplies the smart contract infrastructure, issuer relationships, and liquidity platform that underpin pricing, compliance enforcement, interoperability, and swaps.

Instead of waiting days or weeks for issuer-led redemptions, holders can convert supported tokenized assets into stablecoins instantly, 24/7. The facility purchases assets at a dynamic discount to net asset value (NAV), compensating liquidity providers for offering immediate access to capital.

Institutional-Grade Infrastructure on Solana

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Uniform Labs expects a two-layer liquidity ecosystem to emerge: active market participants pricing real-time exits, and larger balance-sheet allocators warehousing assets to redemption for steadier yield.

The model is expected to gain traction as tokenized assets are increasingly used as collateral across DeFi and institutional venues.

The facility will initially support assets from issuers including VanEck, Janus Henderson, and Fasanara, spanning tokenized Treasury funds and select alternative assets. Integrations with Solana DeFi protocols such as Kamino are under discussion.

Nick Ducoff, head of institutional growth at the Solana Foundation, said reliable redemptions are becoming “critical infrastructure” as Solana’s RWA market scales, positioning the network as a leading venue for issuance, trading, and redemption of tokenized assets.

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The post Uniform Labs’ Multiliquid and Metalayer Launch RWA Redemption Facility on Solana appeared first on Cryptonews.

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Multiliquid, Metalayer Roll Out Instant Redemptions for Tokenized RWAs

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Multiliquid, Metalayer Roll Out Instant Redemptions for Tokenized RWAs

Multiliquid and Metalayer Ventures have launched an institutional liquidity facility to provide instant redemptions for tokenized real-world assets (RWAs) on Solana.

The facility allows holders of tokenized assets to convert positions into stablecoins instantly. The vehicle is raised and managed by Metalayer Ventures, with infrastructure and market support provided by Uniform Labs, the developer behind the Multiliquid protocol, according to an announcement shared with Cointelegraph.

“Traditional finance has repo markets, prime brokerage and overnight lending facilities. Tokenized markets have had nothing comparable, until now,” said Will Beeson, founder and CEO at Uniform Labs. “This is the liquidity infrastructure that institutional RWA markets will require at scale.”

Last year, the Bank for International Settlements warned that tokenized money market funds face liquidity mismatches that could amplify stress during periods of elevated redemption demand.

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Related: Startale, SBI launch blockchain for institutional FX, RWA trading

Standing buyer delivers instant RWA liquidity

Metalayer’s facility functions as a standing buyer of tokenized RWAs, purchasing assets at a dynamic discount to net asset value.

Metalayer Ventures supplies and manages the capital backing redemptions, while Multiliquid provides the smart contract infrastructure used for pricing, compliance enforcement and settlement.

The vehicle will initially support tokenized assets issued by companies including VanEck, Janus Henderson and Fasanara, covering tokenized Treasury funds and select alternative investment products.

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Related: True tokenization demands asset composability, not wrapped bubbles

Solana gains ground in tokenized RWAs

Solana (SOL) has emerged as a growing venue for tokenized RWAs. It ranks eighth among blockchains by total RWA value with about $1.2 billion represented across 343 assets, according to RWA.xyz data. While its market share remains modest at 0.31%, Solana is showing steady momentum, with RWA value up by more than 10% in the past month.

RWA market overview. Source: RWA.xyz

Canton Network, Ethereum (ETH) and Provenance are the three largest blockchains for tokenized RWAs by total value.

Canton dominates the market with more than $348 billion in RWAs and over 88% market share. Ethereum ranks second with $15 billion in tokenized assets, while Provenance also holds $15 billion with fewer assets.

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