Sky Protocol launches Grove: A $1 Billion Investment in Tokenized Credit
On June 25, Sky Protocol unveiled Grove, a new credit protocol for decentralized finance (DeFi).This move injects $1 billion into tokenized credit, marking a meaningful step in DeFi’s evolution.
Grove, part of the Sky (SKY) ecosystem, aims to bridge traditional finance with blockchain. it partners with Centrifuge to offer the Janus Henderson Anemoy AAA CLO Strategy. This strategy, managed by the team behind janus Henderson’s $21 billion AAA CLO ETF, brings traditional assets onto the blockchain. It’s the first fully tokenized collateralized loan obligation (CLO) strategy.
Key points include:
- Grove connects onchain protocols with traditional asset managers.
- It allows crypto projects to invest idle funds in regulated vehicles.
- The non-custodial system ensures flexible capital allocation.
Developed by Grove Labs, a division of Steakhouse Financial, the protocol has backing from finance experts. This collaboration aims to integrate real-world assets into DeFi, enhancing asset diversity.Sam Paderewski, Grove Labs co-founder, highlights the growing demand for high-quality, yield-generating assets on the blockchain.
Janus Henderson, a major player in traditional finance, sees this as a step toward integrating traditional products into defi. Nick Cherney, head of innovation at Janus Henderson, notes the expansion of global access to structured credit through tokenization.
With Grove, Sky Protocol advances its Endgame strategy, reorganizing into modular units called “Stars.” grove, alongside Spark, strengthens Sky’s ecosystem. Rune christensen, Sky co-founder, emphasizes the protocol’s goal of building an open, decentralized capital network. The launch reflects the increasing interest in tokenized fixed-income products. As 2023,the tokenized U.S. Treasury market has surged from $500 million to over $7.3 billion. The JAAA fund offers a diversified, actively managed product, continuing the trend of tokenized fixed-income products. The success of the JTRSY tokenized Treasury fund paved the way for this CLO strategy. The initiative supports Sky’s vision of an open, decentralized capital network.grove will facilitate asset manager and crypto-native protocol allocations, driving DeFi liquidity. This move underscores the protocol’s commitment to an open, decentralized capital network. Grove’s infrastructure is set to be a crucial liquidity engine for DeFi, bridging the gap between traditional and decentralized finance.
As DeFi evolves,Grove plays a vital role in Sky’s mission. It enables access to institutional-grade credit without compromising decentralization.
