Centrifuge and Resolv said on February 25 they were deploying up to $100 million of JAAA, a AAA-rated token credit fund, as leveraged collateral on Aave Horizon – marking decentralized finance’s (DeFi) largest real-world asset (RWA) loop trade to date.
Resolv – a protocol that maintains the $162 million USR stablecoin – adds JAAA (an on-chain version of Janus Henderson’s AAA-rated CLO investment fund) to its system using Centrifuge’s tokenization technology. Centrifuge currently has a TVL of $1.35 billion.
Rather than just holding the fund, Resolv will use JAAA as collateral within Aave’s credit markets to generate returns and support its stablecoin. Aave is the largest DeFi protocol, with a total value of almost $28 billion, according to DeFiLlama, while Aave Horizon is its institution-focused implementation.
This move shows how tokenized assets are increasingly being used in real financial products rather than just existing ones on-chain. It also comes as the tokenized RWA market continues to grow, with distributed asset values now above $25 billion, up about 7% in the past month, according to RWA.xyz.
“The allocation to JAAA and its implementation through Aave Horizon demonstrates the next phase of tokenization: utility at scale,” Nadim Chamoun, director of business development at Centrifuge Labs, told The Defiant.
Chamoun added that the strategy allows Resolv to manage risk more actively while earning the difference between traditional credit returns and on-chain interest rates.
For Resolv, the move is also part of a broader effort to diversify the sources of its returns. “Economically, diversification across markets clearly makes sense for scalable capital allocators,” Tim Shekikhachev, co-founder of Resolv Labs, told The Defiant. “On-chain returns move with crypto leverage cycles, while global fixed income markets are anchored to broader macro conditions.”
Shekikhachev added that when crypto rates fall, tokenized credit like JAAA can help balance returns.
“What is now finally being unlocked is the entire supply chain functioning at scale: capital flows from Resolv USR, through Centrifuge’s tokenization infrastructure, to Aave Horizon’s leverage layer,” he said. “Ultimately, this will flow into AAA-rated assets managed by Anemoy and Janus Henderson, a market leader in this segment. DeFi will not replace traditional finance – it will scale by plugging into it.”