Grove Launches in Sky Ecosystem With $1 Billion Tokenized Credit Strategy
Grove, a new DeFi protocol, launched with a $1 billion commitment to tokenized asset strategies. It aims to connect DeFi with traditional finance by facilitating on-chain capital investment in regulated credit assets, particularly collateralized loan obligations (CLOs).
- Grove enables crypto protocols and asset managers to invest idle reserves into real-world assets (RWAs), offering yields independent of crypto market fluctuations.
- It is part of the Sky Ecosystem, which is undergoing an overhaul called Endgame, restructuring into autonomous units known as "stars."
- The protocol's initial $1 billion allocation will be invested in the Janus Henderson Anemoy AAA CLO Strategy (JAAA).
- The Grove team includes professionals from Deloitte, Hildene Capital Management, BlockTower Capital, and Citibank, and was incubated by Steakhouse Financial.
- Sky also issues stablecoins like DAI and USDS and is shifting reserves towards RWAs such as tokenized Treasuries.
Anil Sood from Centrifuge highlighted the demand for diversified, high-quality on-chain assets. Sam Padarewski noted that Grove allows access to institutional-grade CLOs while enabling flexibility between DeFi and TradFi yield environments.