Grove, an institutional-grade credit infrastructure protocol designed to serve as the liquidity engine of Decentralized Finance (DeFi), emerged from stealth with a $1 billion allocation from the Sky Ecosystem (formerly MakerDAO) into the Janus Henderson Anemoy AAA CLO Strategy (JAAA), a tokenized, onchain vehicle launched in partnership with Centrifuge, using Grove’s decentralized infrastructure. The Sky Ecosystem approved an allocation deployed using the Grove protocol infrastructure in the Janus Henderson Anemoy AAA CLO Strategy.
Managed by the same portfolio managers behind Janus Henderson’s $21 billion AAA CLO ETF, this strategy offers global onchain investors an institutional-grade solution which seeks capital preservation with attractive yield.
“Demand for access to TradFi asset classes in DeFi continues to build momentum, as evidenced by the rapid growth of tokenized treasuries to $7.3 billion from $500 million in 2023 with Treasury bills and other assets moving onchain. The launch of Grove comes at a pivotal time when TradFi and DeFi are converging and to serve as a gateway between these two critical financial ecosystems. CLOs are just one of the many assets ripe for movement into DeFi due to their attractive yield profile and structure, and we are excited to partner with Janus Henderson and Centrifuge on the debut application of Grove’s infrastructure,” Sam Paderewski, co-founder of Grove Labs, said. “With the launch of Grove, for the first time, protocols can access liquid, institutional-grade CLOs while maintaining the flexibility to pivot between DeFi and TradFi yield environments. This $1 billion allocation from the Sky Ecosystem to JAAA is just an early step in supporting a robust onchain capital highway where institutional managers and DeFi protocols can securely, efficiently and transparently operate on an open blockchain.”
“Last year, our pioneering AAA CLO strategy attracted the most inflows among all actively managed fixed income ETFs, underscoring the growing investor appetite for innovative fixed-income solutions. When Grove approached us to bring this strategy onchain, we were impressed by their clear vision for building the onchain economy,” Nick Cherney, head of innovation at Janus Henderson Investors, said. “Our innovation strategy is focused on preparing for the possibility that blockchain technology will transform traditional finance in the long term. We are excited to partner with Grove and Centrifuge who share that vision, and are leaders in making it a reality. Bringing this actively managed credit strategy fully onchain is a huge leap forward in the integration of RWAs into Defi. We look forward to a long-term partnership.”
“The Sky Ecosystem has a long history of bringing tokenized RWAs online to increase the stability and efficacy of the DAI and USDS stablecoins. As active community participants, the team behind Grove has played a critical role in unlocking the power of RWAs for DeFi,” Rune Christensen, co-founder of Sky, said. “With the move to embrace CLOs, Grove, as a Star operating in the Sky Ecosystem, is showcasing their expertise and innovation in helping protocols and organizations modernize and diversify their portfolios of RWAs.”
“While tokenized treasuries have paved the way, there’s a growing demand for more diversified, high-quality assets onchain,” Anil Sood, chief strategy and growth officer of Centrifuge, said. “Instead of simply wrapping an offchain ETF, together with Janus Henderson we’ve brought JAAA fully onchain, unlocking operational efficiencies, reducing intermediary costs, and expanding access to a broader, global base of capital allocators.”
