Grove, a new platform in the decentralized finance (DeFi) space, is launching from stealth. It’s made $1 billion worth of commitments to a new tokenized asset strategy. That’s because the protocol serves as an important bridge between traditional finance and DeFi. It opens new opportunities for crypto-native protocols and asset managers to access and invest in real-world assets (RWAs). Grove enables protocols and asset managers to earn a yield on their reserves that’s not correlated with crypto markets.
Sky provides Grove with a $1 billion allocation. Additionally, they will deploy this allocation into the Janus Henderson Anemoy AAA CLO Strategy (JAAA). JAAA is a Janus Henderson managed tokenized fund. It runs on Centrifuge, a blockchain-based platform that aims to bring real-world assets onto the blockchain by tokenizing them. Grove focuses on institutional-grade credit infrastructure.
The shapeshifters of the Grove core contributor team Mark Phillips, Kevin Chan, and Sam Paderewski. They join from Deloitte, Hildene Capital Management, BlockTower Capital, and Citibank. Grove is a leader within the Sky Ecosystem, formerly known as MakerDAO. Together, it remains as one of the largest and most well-established DeFi lenders in the entire industry.
"While tokenized treasuries have paved the way, there's a growing demand for more diversified, high-quality assets on-chain" - Anil Sood, chief strategy and growth officer of Centrifuge.
To meet the increasing demand for more diversified and higher-quality assets in the DeFi ecosystem, Grove has created DeFi’s new standard. Grove tokenizes other real-world assets, like the JAAA fund. This mechanism creates new avenues for institutional investors to participate in the DeFi ecosystem, all while providing crypto-native protocols access to high-quality, stable, and reliable yields. This represents a huge source of unreleased value and it would help to entice even more adoption of DeFi.
