Galaxy Digital just rolled out its first tokenized collateralized loan obligation on the Avalanche blockchain—marking a pretty solid move in bringing traditional finance structures into the on-chain world. The whole deal runs on Avalanche's network infrastructure, which handles the settlement and verification of these digital loan obligations. So what's the actual play here? Tokenizing collateralized debt lets institutional players package, trade, and settle loans way faster than the old-school method. Avalanche's throughput and finality characteristics make it a natural fit for this kind of application—you need reliable execution, especially when real capital is moving through the system. This isn't just a tech flex either. It signals that major institutions are getting comfortable running structured financial products on public blockchains. The tokenization angle also opens up fractional ownership and secondary market mechanics that weren't feasible before. For the DeFi ecosystem, this kind of institutional adoption matters because it validates the infrastructure and brings real-world asset (RWA) use cases closer to mainstream deployment.