Centrifuge Tokenize Credit

TradFi just marched a billion dollars onto the blockchain. Asset-management giant Janus Henderson has teamed with Centrifuge (CFG) and Grove to launch JAAA, an on-chain version of its flagship AAA CLO strategy. 

Unlike superficial wrappers around legacy ETFs, this product lives natively on Centrifuge tech, with Grove seeding the pool with one billion dollars straight out of the Sky ecosystem’s war chest. 

The move signals a maturation of tokenized finance, hopping from low-risk treasury bills to complex collateralized loan obligations that historically required prime-broker paperwork and long settlement cycles. 
Grove’s non-custodial protocol pipes institutional capital into DeFi while letting protocols pivot between stablecoin yields and higher-octane credit without off-chain friction. 

The backers read like a mini Wall Street: alumni from Deloitte, BlockTower, Citibank, and Hildene have built systems to satisfy auditors and smart-contract diehards in one stroke. 

For Centrifuge, JAAA showcases its ability to embed entire credit workflows on-chain, trimming intermediaries and slashing op-ex. Investors get tokenized notes that settle in minutes and pay yields sourced from a twenty-one-billion-dollar ETF track record. 

Because the fund is on a permissionless rail, DAOs can allocate treasury idle funds, collateralize stablecoins, or spin derivatives without begging custodians. Janus Henderson sees blockchain as the next distribution channel for active fixed-income management, noting JAAA pulled the most inflows of any active bond ETF last year. 

Rune Christensen of Sky calls the deal proof that real-world assets give DeFi serious heft. Critics will squint at regulatory risk, but Grove’s design keeps assets within compliant silos and lets institutions audit flows transparently. 

The launch ups the ante for tokenization peers dabbling in invoice pools and private credit slices. If a billion-dollar CLO can live on-chain, mortgage bonds and muni ladders may not be far behind. 

TradFi wanted yield with transparency, DeFi wanted size with credibility. JAAA tries to give both camps what they asked for.

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