In a landmark move accelerating the convergence of traditional finance (TradFi) and decentralized finance (DeFi), Grove has officially launched as an institutional-grade credit infrastructure protocol. The debut is marked by a $1 billion allocation from the Sky Ecosystem into the Janus Henderson Anemoy AAA CLO Strategy (JAAA)—the first collateralized loan obligation (CLO) strategy ever brought fully onchain. This milestone underscores a pivotal shift in how real-world assets (RWAs) are being integrated into DeFi, offering protocols and investors access to diversified, high-quality yield-bearing instruments beyond tokenized Treasury bills.
Built by Grove Labs, a subsidiary of Steakhouse Financial, Grove operates as a “Star” within the decentralized Sky Ecosystem governance framework. Its mission is clear: to serve as the secure, non-custodial highway connecting TradFi capital with DeFi’s programmable financial rails. By leveraging deep expertise in structured finance, risk management, and blockchain innovation, Grove enables seamless capital deployment into regulated, institutional-grade assets—without sacrificing decentralization or control.
Bridging TradFi and DeFi with Institutional-Grade Infrastructure
As DeFi protocols accumulate billions in idle reserves, the need for efficient, compliant capital deployment channels has never been greater. Historically, DeFi yields have fluctuated with crypto market cycles, leaving protocols exposed during downturns. Grove addresses this challenge by unlocking access to stable, risk-adjusted yields through real-world asset strategies—starting with one of the most sophisticated instruments in fixed income: AAA-rated CLOs.
The $1 billion allocation into JAAA—managed by the same team behind Janus Henderson’s $21 billion AAA CLO ETF—marks the first live application of Grove’s infrastructure. Unlike wrapped offchain funds, JAAA is fully onchain, built in partnership with Centrifuge, a leader in tokenized asset infrastructure. This approach eliminates intermediary friction, reduces costs, and expands global access to a proven credit strategy.
👉 Discover how institutional-grade yield can transform your DeFi strategy
“This is more than just tokenization—it’s full integration,” said Sam Paderewski, Co-founder of Grove Labs. “For the first time, DeFi protocols can access liquid, institutional-grade CLOs while maintaining full control over their capital. Grove is the gateway between TradFi and DeFi, enabling secure, transparent, and efficient capital flows on open blockchains.”
Why CLOs? The Next Evolution Beyond Tokenized Treasuries
Tokenized U.S. Treasury bills have surged in popularity, growing from $500 million in 2023 to over $7.3 billion in 2025. But as demand for diversified yield grows, market participants are asking: What comes after T-Bills?
CLOs represent a natural next step. These structured credit products pool senior secured loans and distribute risk across tranches, with the AAA tranche offering high credit quality and attractive yields. By bringing this strategy onchain, Grove provides DeFi protocols with exposure to a non-correlated, income-generating asset class that enhances portfolio durability.
Nick Cherney, Head of Innovation at Janus Henderson Investors, emphasized the strategic importance: “Our AAA CLO strategy attracted the most inflows among actively managed fixed income ETFs last year. When Grove approached us, we saw a shared vision for the future of finance—one where blockchain transforms how capital moves globally.”
Core Benefits Across Stakeholders
Grove’s infrastructure delivers value across three key ecosystems:
Asset Managers
- Access a new global distribution channel via programmable onchain capital.
- Reduce reliance on traditional intermediaries through direct investor engagement.
- Enhance transparency and operational efficiency with real-time settlement and reporting.
DeFi Protocols & DAOs
- Deploy idle reserves into regulated, institutional-grade assets.
- Improve capital efficiency and generate stable yields independent of crypto market cycles.
- Maintain full custody and control—no centralized custodians or third-party risk.
The Broader DeFi Ecosystem
- Increases credibility and long-term sustainability through diversified RWA exposure.
- Strengthens economic resilience by reducing reliance on volatile native yields.
- Attracts institutional-grade participants seeking compliant, transparent investment rails.
A Team Built at the Intersection of Finance and Technology
The Grove Labs team brings decades of combined experience from top-tier institutions including Deloitte, Citigroup, BlockTower Capital, and Hildene Capital Management. Their transition from TradFi to DeFi was driven by a belief that blockchain can modernize financial infrastructure—not replace it.
Mark Phillips, Kevin Chan, and Sam Paderewski—Grove’s co-founders—have facilitated over $5 billion in onchain capital allocations and played key roles in pioneering early RWA integrations within the Sky Ecosystem. Their work reflects a deep understanding of credit structuring, regulatory compliance, and decentralized governance.
Anil Sood, Chief Strategy and Growth Officer at Centrifuge, noted: “Instead of simply wrapping an offchain ETF, we’ve brought JAAA fully onchain. This unlocks real operational efficiencies and expands access to a global base of capital allocators.”
👉 See how next-gen credit infrastructure is reshaping DeFi returns
FAQs: Understanding Grove’s Role in DeFi Evolution
Q: What is Grove?
A: Grove is an institutional-grade credit infrastructure protocol that connects DeFi with real-world asset strategies like CLOs and tokenized bonds. It enables secure, non-custodial capital deployment into regulated financial instruments.
Q: What makes JAAA different from other tokenized funds?
A: Unlike wrapped funds, JAAA is fully onchain—structured, governed, and settled via smart contracts. This reduces counterparty risk and enhances transparency for investors.
Q: Who manages the underlying CLO strategy?
A: The same portfolio managers who oversee Janus Henderson’s $21 billion AAA CLO ETF manage JAAA, ensuring institutional-grade expertise and consistency.
Q: Is user capital custodied by Grove?
A: No. Grove is non-custodial—users retain full control of their assets at all times. The protocol facilitates access but does not hold or manage funds.
Q: How does this benefit DeFi protocols?
A: Protocols can deploy idle reserves into high-quality, yield-generating assets without leaving the blockchain, improving capital efficiency and financial stability.
Q: What’s next for Grove?
A: Following the JAAA launch, Grove plans to expand its offerings to include other institutional credit strategies, further deepening the integration of TradFi assets into DeFi.
The Future of Finance is Converging—Onchain
The launch of Grove signals a new era in financial infrastructure. As Rune Christensen, co-founder of Sky, stated: “Grove is showcasing how innovation at the edge of the ecosystem can drive systemic change. This is how we modernize portfolios and strengthen DeFi’s long-term resilience.”
With over $373 billion in assets under management, Janus Henderson is one of the world’s largest active asset managers. Its partnership with Grove and Centrifuge validates blockchain’s potential to transform traditional finance—not as a disruptor, but as an enabler of greater efficiency, accessibility, and transparency.
👉 Explore how institutional yield meets decentralized control
As more asset managers explore onchain distribution and DeFi protocols seek sustainable yield sources, Grove’s role as a secure capital highway between TradFi and DeFi becomes increasingly critical. The $1 billion allocation into JAAA is just the beginning.
This communication does not constitute an offer to purchase or sell securities. Users maintain full custody and control of their assets. No investment advice is provided.