Sky Protocol Launches Grove DeFi Infrastructure With $1 Billion Investment

Sky Protocol has launched Grove, a decentralized finance (DeFi) infrastructure layer, with a $1 billion capital allocation aimed at bringing institutional-grade credit markets onchain. This initiative represents a significant step in integrating traditional credit instruments with blockchain technology.

Grove is part of the Sky ecosystem’s broader Endgame strategy, which involves reorganizing the protocol into autonomous “Stars.” Grove joins Spark as one of these Stars, focusing on connecting decentralized capital with real-world, regulated financial products. The launch was announced on June 25, 2025, and Grove is designed to operate as a capital-routing layer between crypto-native projects and traditional asset managers.

At launch, Sky’s $1 billion investment in Grove is directed toward the Janus Henderson Anemoy AAA CLO Strategy, a fully tokenized collateralized loan obligation (CLO) fund. Developed in partnership with Centrifuge, this strategy brings a traditionally off-chain asset class into the DeFi space, known for its yield stability and capital preservation. The fund is managed by the same team behind Janus Henderson’s $21 billion AAA CLO ETF, marking the first-ever fully onchain deployment of a CLO strategy.

Grove’s non-custodial infrastructure allows DeFi protocols to channel idle reserves into actively managed, diversified credit vehicles without leaving the blockchain environment. This aims to provide secure and flexible capital allocation while maintaining decentralization. The protocol was incubated by Grove Labs, a division of Steakhouse Financial, in collaboration with a founding team of seasoned professionals from Citigroup, Deloitte, Hildene Capital, and BlockTower Capital.

This initiative reflects the growing demand for onchain exposure to high-quality, yield-generating instruments, particularly tokenized fixed-income products. Janus Henderson’s head of innovation highlighted Grove as a milestone in DeFi’s evolution, following the success of the firm’s earlier partnership with Centrifuge on the tokenized Treasury fund.

In May, Sky moved to solidify its departure from the Maker brand with a sweeping upgrade proposal that would officially replace its existing governance structure and introduce staking rewards. This move underscores Sky’s commitment to innovation and its role in the DeFi ecosystem.

Grove’s launch is expected to unlock operational efficiencies and broader investor access, addressing the growing demand for diversified, high-quality assets onchain. The initiative is supported by Sky, whose protocol underpins stablecoins and continues to lead in the adoption of tokenized real-world assets.

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.