The convergence of traditional finance (TradFi) and decentralized finance (DeFi) has taken a significant leap forward with the official launch of Grove, a new institutional-grade credit infrastructure protocol. Designed to act as the liquidity engine of DeFi, Grove has secured a landmark $1 billion allocation from the Sky Ecosystem—formerly known as MakerDAO—into the Janus Henderson Anemoy AAA CLO Strategy (JAAA), marking the first time a collateralized loan obligation (CLO) strategy is available fully onchain.
This milestone underscores a growing shift in digital asset markets: the demand for diversified, high-quality, real-world assets (RWAs) that deliver stable yields beyond tokenized U.S. Treasury bills. The JAAA strategy, built in partnership with Centrifuge using Grove’s decentralized infrastructure, offers DeFi protocols and global investors access to an actively managed, institutional-grade credit product with a focus on capital preservation and attractive risk-adjusted returns.
👉 Discover how institutional capital is flowing into DeFi through secure, compliant pathways.
Bridging TradFi and DeFi with Secure Credit Infrastructure
As DeFi matures, its reliance on volatile native yields has exposed systemic risks during market downturns. Meanwhile, crypto-native protocols sit on billions in idle reserves, lacking secure and compliant mechanisms to deploy capital efficiently. Grove addresses this gap by creating a non-custodial, transparent capital highway between DeFi and TradFi.
Grove enables protocols, DAOs, and institutional asset managers to:
- Deploy idle onchain capital into regulated, yield-bearing instruments.
- Access diversified credit strategies without sacrificing decentralization.
- Maintain full custody and control over assets at all times.
Unlike simple asset wrappers, Grove integrates deeply with traditional financial structures—ensuring compliance, transparency, and operational efficiency—while preserving the programmability and openness of blockchain systems.
A Strategic Partnership Driving RWA Innovation
The success of the Janus Henderson Anemoy Treasury Fund (JTRSY) earlier in 2025—now one of the top five tokenized Treasury funds by assets under management (AUM)—laid the foundation for this next evolution. Encouraged by strong market adoption, Janus Henderson chose to bring its flagship AAA CLO strategy onchain through Centrifuge and Grove.
Managed by the same portfolio managers behind Janus Henderson’s $21 billion AAA CLO ETF, JAAA brings proven investment expertise directly to the blockchain. This move answers a critical question in DeFi: What comes after tokenized T-Bills? The answer lies in diversified credit products backed by real-world cash flows.
“Demand for access to TradFi asset classes in DeFi continues to build momentum,” said Sam Paderewski, Co-founder of Grove Labs. “With the launch of Grove, for the first time, protocols can access liquid, institutional-grade CLOs while maintaining flexibility between DeFi and TradFi yield environments.”
This $1 billion allocation from the Sky Ecosystem into JAAA is not just a capital deployment—it's the debut application of Grove’s infrastructure and a signal of confidence in the future of onchain finance.
Built by Experts at the Intersection of Finance and Technology
Grove was incubated by Grove Labs, a subsidiary of Steakhouse Financial, within the decentralized governance framework of the Sky Ecosystem. The founding team—Mark Phillips, Kevin Chan, and Sam Paderewski—brings deep experience from both traditional finance and DeFi, having previously worked at firms like Deloitte, Citigroup, BlockTower Capital, and Hildene Capital Management.
Their mission: build open-source, non-custodial protocols that safely integrate institutional strategies into DeFi. With over $5 billion in prior onchain capital allocations facilitated, the team is uniquely positioned to lead the TradFi-DeFi convergence.
👉 See how next-generation credit infrastructure is unlocking institutional capital flows.
Value Creation Across Stakeholders
Grove delivers tangible benefits across key participants in the financial ecosystem:
Asset Managers
Gain a global distribution channel powered by programmable capital rails. By tokenizing strategies like JAAA, asset managers can reach a new class of crypto-native investors while reducing intermediary costs and settlement times.
Protocols & DAOs
Transform idle reserves into productive capital. Grove allows protocols to earn risk-adjusted yields from regulated assets without compromising security or decentralization—boosting capital efficiency across their balance sheets.
The Broader DeFi Ecosystem
Enhances credibility, diversification, and long-term sustainability. By integrating high-quality RWAs, DeFi becomes more resilient to market cycles and better equipped to serve as a mainstream financial layer.
Industry Leaders Weigh In on the Future of Onchain Finance
Nick Cherney, Head of Innovation at Janus Henderson Investors, emphasized the strategic importance of blockchain in shaping long-term financial infrastructure:
“When Grove approached us to bring this strategy onchain, we were impressed by their clear vision for building the onchain economy… Bringing this actively managed credit strategy fully onchain is a huge leap forward in the integration of RWAs into DeFi.”
Anil Sood, Chief Strategy and Growth Officer at Centrifuge, highlighted the operational advantages:
“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.”
Rune Christensen, co-founder of Sky, noted Grove’s pivotal role within the ecosystem:
“As a Star operating in the Sky Ecosystem, Grove is showcasing their expertise in helping protocols modernize and diversify their RWA portfolios.”
Core Keywords Driving Search Intent
- Institutional-grade DeFi protocol
- Tokenized CLO strategy
- Real-world asset (RWA) integration
- Decentralized credit infrastructure
- Onchain capital allocation
- TradFi-DeFi convergence
- Sky Ecosystem
- Janus Henderson tokenization
These keywords reflect growing user interest in secure, compliant pathways for deploying crypto capital into traditional financial instruments—exactly what Grove enables.
Frequently Asked Questions (FAQ)
Q: What is Grove?
A: Grove is an institutional-grade credit infrastructure protocol designed to connect DeFi with traditional finance by enabling secure, non-custodial capital allocation into real-world assets like CLOs and other regulated instruments.
Q: What is the significance of the $1 billion allocation?
A: It marks the first major deployment of capital through Grove’s infrastructure—demonstrating strong confidence from the Sky Ecosystem in onchain credit products and setting a precedent for future RWA integrations.
Q: How does Grove differ from other RWA platforms?
A: Unlike platforms that merely wrap offchain assets, Grove builds fully onchain strategies with integrated governance and capital routing, ensuring transparency, efficiency, and direct access without intermediaries.
Q: Who manages the Janus Henderson Anemoy AAA CLO Strategy?
A: The same experienced portfolio managers who oversee Janus Henderson’s $21 billion AAA CLO ETF manage the tokenized JAAA strategy, ensuring continuity and institutional rigor.
Q: Is user capital safe when using Grove?
A: Yes. Grove is non-custodial—users retain full control of their assets at all times. No single entity controls funds or makes unilateral investment decisions.
Q: Can any protocol use Grove’s infrastructure?
A: Yes. Grove is open-source and designed for integration by protocols, DAOs, and asset managers seeking to enhance capital efficiency through diversified RWA exposure.
👉 Explore how you can integrate secure, yield-generating RWAs into your DeFi strategy today.
Grove represents a foundational step toward a more mature, sustainable DeFi ecosystem—one where institutional-grade credit infrastructure powers innovation, stability, and global financial inclusion.