The decentralized finance network of Sky Protocol has launched a new institutional credit protocol with an investment of $ 1 billion in Tokenized Credit.
Grove, a Defi credit infrastructure developed as part of the Ecosystem of the Sky (Sky), was announced in a press release on 25 June. During the launch, the SKY ecosystem allocated $ 1 billion to Grove for investments in the Janus Henderson Anemoy AAA Clo strategy, created a fully Tokenized Fund in collaboration with Centrifuge.
Run by the same team that manages the $ 21 billion AAA CLO ETF by Janus Henderson, the Defi strategy offers access to a traditional off-chain activa class known for return stability and capital retention. This marks the first time that a collateral for loan obligations of investment strategy has been fully deployed.
Grove is designed to serve as a capital router layer between Onchain protocols and traditional asset managers. Thanks to the infrastructure of Grove, crypto-native projects can use inactive reserves in diversified, regulated vehicles, without leaving the blockchain environment. The non-guardianship system ensures a flexible capital allocation.
One of the founders of Tradefi and Defi veterans of Citigroup, Deloitte, Blocktower Capital and Hildene Capital collaborated with Grove Labs, a Division of Steakhouse Financial, to incorporate the protocol.
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Grove is supported by the Sky Ecosystem as part of its larger endgame strategy, which aims to reorganize its protocol in independent, modular units called ‘stars’ for a period of years. With Grove that Spark adds like a new star, Sky steps up his efforts to include Tokenized Real-World assets in Defi.
“The demand for high-quality, yield-generating assets Onchain is growing,” says Sam Paderewski, co-founder of Grove Labs. “The launch of Grove, supported by a allocation of $ 1 billion from Sky, shows how protocols now have access to liquid, institutional credit credit without endangering decentralization or flexibility.”
The launch also reflects the growing appetite for tokenized fixed income products in Defi. The tokenized US Treasury Market has grown from $ 500 million to more than $ 7.3 billion since 2023. By offering a more diversified, actively managed product Onchain, the Jaaa Fund continues this trend.
Janus Henderson, who previously collaborated with Centrifuge to launch the Jtrsy Tokenized Treasury Fund, said that the success of that initiative has cleared the way for this latest CLO strategy.
“With the infrastructure of gross, we are expanding global access to structured credit,” said Nick Cherney, head of innovation at Janus Henderson. “Toking this strategy is an important step to integrate traditional financial products into Defi.”
Co-founder of Sky Rune Christensen noted that the long-term objective of the protocol is to build an open, decentralized capital network. The launch of gross, he said, promotes that mission by adding a new layer of asset-diversity to the Real-World Activaportfolio of the system.
As part of his route map, Grove will continue to facilitate the allocations between assets managers and crypto-native protocols, and position itself as an important liquidity engine for Defi.
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