Sky Protocol Launches Grove DeFi Credit Protocol With $1 Billion Investment

Sky Protocol has launched a new decentralized finance (DeFi) credit protocol named Grove, backed by a $1 billion investment. This initiative aims to bring institutional credit onchain, marking a significant step in the integration of traditional finance (TradFi) and DeFi. Grove will allocate this investment into tokenized collateralized loan obligations (CLOs), specifically the Janus Henderson Anemoy AAA CLO Strategy, which is a fully tokenized fund created in collaboration with Centrifuge.

The Janus Henderson Anemoy AAA CLO Strategy is managed by the same team that oversees Janus Henderson’s $21 billion AAA CLO ETF. This strategy provides DeFi with access to a traditionally off-chain asset class known for its yield stability and capital preservation. This marks the first time a collateralized loan obligation investment strategy has been deployed fully onchain.

Grove is designed to serve as a capital routing layer between onchain protocols and traditional asset managers. Through Grove’s infrastructure, crypto-native projects can deploy idle reserves into diversified, regulated vehicles without leaving the blockchain environment. The non-custodial system allows for flexible capital allocation. A founding group of TradFi and DeFi veterans from Citigroup, Deloitte, BlockTower Capital, and Hildene Capital worked with Grove Labs, a division of Steakhouse Financial, to incubate the protocol.

Grove is supported by the Sky ecosystem as part of its larger Endgame strategy, which aims to reorganize its protocol into independent, modular units called “Stars” over a period of years. With Grove joining Spark as a new Star, Sky is stepping up its efforts to incorporate tokenized real-world assets into DeFi. Sam Paderewski, Grove Labs co-founder, highlighted the growing demand for high-quality, yield-generating assets onchain, stating that the launch of Grove, backed by a $1 billion allocation from Sky, shows how protocols can now access liquid, institutional-grade credit without compromising decentralization or flexibility.

The launch of Grove reflects the growing appetite for tokenized fixed-income products in DeFi. The tokenized U.S. Treasury market has grown significantly since 2023. By providing a more diversified, actively managed product onchain, the JAAA fund continues this trend. Janus Henderson, which previously partnered with Centrifuge to launch the JTRSY tokenized Treasury fund, noted that the success of that initiative helped pave the way for this latest CLO strategy.

Nick Cherney, head of innovation at Janus Henderson, emphasized that Grove’s infrastructure expands global access to structured credit. Tokenizing this strategy is a major step toward integrating traditional financial products into DeFi. Sky co-founder Rune Christensen noted that the protocol’s long-term goal is to build an open, decentralized capital network. Grove’s launch advances that mission by adding a new layer of asset diversity to the system’s real-world asset portfolio.

As part of its roadmap, Grove will continue to facilitate allocations between asset managers and crypto-native protocols, positioning itself as a key liquidity engine for DeFi. The protocol is designed to create a secure and scalable capital highway, facilitating the flow of capital between traditional financial markets and decentralized finance. Grove's team comprises experts with deep experience in TradFi, DeFi, and credit markets, drawing from backgrounds at firms such as Deloitte, BlockTower Capital, Hildene Capital Management, and Citibank. The protocol was incubated by Steakhouse Financial and supported by Sky, further solidifying its position within the DeFi landscape.

Centrifuge, a key player in this initiative, has been instrumental in bringing JAAA onchain. Unlike traditional methods that wrap existing funds, Centrifuge has fully integrated the credit strategy into an onchain-native format. This approach reduces intermediary costs, increases operational efficiency, and expands access to a global base of capital allocators. Anil Sood, Chief Strategy and Growth Officer of Centrifuge, highlighted the growing demand for diversified, high-quality assets onchain, noting that the partnership with Janus Henderson and Grove unlocks operational efficiencies and broader investor access.

The JAAA strategy, managed by the same portfolio managers behind Janus Henderson’s $21 billion AAA CLO ETF, seeks to preserve capital while delivering attractive yield. This launch offers onchain investors an institutional-grade solution, providing a next step beyond tokenized T-Bills. The initiative is supported by Sky, whose protocol underpins stablecoins like USDS and continues to lead in the adoption of tokenized RWAs. Rune Christensen, co-founder of Sky, emphasized the critical role of Grove in unlocking the power of RWAs for DeFi, showcasing its expertise and innovation in modernizing and diversifying portfolios.

Through Centrifuge, asset managers can bring institutional-grade credit strategies fully onchain, delivering regulated, tokenized investment vehicles to the DeFi ecosystem. This partnership aims to lead the shift toward more transparent, efficient, and programmable financial products, unlocking capital efficiency and expanding global access to traditionally exclusive asset classes. By embracing tokenization, Centrifuge, Grove, and Janus Henderson are paving the way for the next chapter in onchain capital, bridging the gap between TradFi and DeFi.