In a significant move for the burgeoning world of blockchain finance, Grove, a credit protocol within the Sky ecosystem, has set its sights on the Avalanche (AVAX) network. Announced Monday, the plan to deploy up to $250 million into tokenized credit products marks a notable expansion for Grove, which is partnering with Centrifuge and Janus Henderson to make waves in the real-world asset (RWA) sector.
A New Era for Onchain Credit Markets
Grove’s strategy involves tapping into the Janus Henderson Anemoy AAA CLO Fund (JAAA), a product ushered into the digital realm through Centrifuge’s expertise in tokenization. Centrifuge, renowned for its blockchain chops, is launching the Janus Henderson Anemoy Treasury Fund (JTRSY), a token tethered to U.S. Treasury assets. Grove is banking on this collaboration to usher in what co-founder Mark Phillips describes as “a new era of scalable onchain credit markets.” This aligns with broader trends in the industry, such as Australia’s Central Bank exploring wholesale tokenized asset markets, highlighting a global shift towards blockchain-based financial systems.
The choice of Avalanche as a platform isn’t random. Known for its high throughput and low latency, Avalanche has been actively courting institutional players—earlier this year, it made headlines by tokenizing $240 billion worth of property deeds in a New Jersey county. The network’s infrastructure seems poised to support the kind of sophisticated credit markets Grove envisions.
The Power of Tokenization
The surge in tokenization—transforming traditional assets like credit, bonds, and funds into blockchain assets—has been one of the most exciting trends in finance. For Grove, this isn’t just about technology; it’s about access. The team, which boasts veterans from heavyweights like Deloitte, Citigroup, and BlockTower, aims to open up structured credit markets to both crypto-native and traditional investors. By doing so, they hope to replicate the success seen with MakerDAO’s venture into tokenized Treasuries. This mirrors initiatives like Gate’s launch of the xStocks section, which pioneers new pathways between crypto and traditional finance, further illustrating the convergence of these two worlds.
Janus Henderson’s involvement, with its staggering $373 billion in assets under management, marks one of the most significant traditional finance entries into Avalanche’s ecosystem. Their participation not only lends credibility but also raises the stakes in the race to dominate onchain financial products.
Implications for the Broader Market
So, what does this mean for the crypto-curious and the market at large? For one, it underscores a growing confidence among traditional finance giants in the capabilities of blockchain platforms like Avalanche. As more established financial entities dip their toes into the crypto waters, the lines between traditional and digital finance continue to blur.
However, this trend also comes with its own set of challenges and questions. Can the infrastructure handle the scale? Will regulatory landscapes adapt to these hybrids of old and new finance? And most importantly, can this momentum be sustained?
These are not trivial questions. As Grove and its partners forge ahead, the answers will likely shape not just the future of blockchain finance but the broader financial ecosystem as well.
Looking Ahead
As we stand on the brink of what could be a transformative period for finance, the significance of Grove’s move cannot be overstated. The integration of traditional assets into blockchain systems promises efficiency, transparency, and unprecedented access. But, like any frontier, it’s fraught with uncertainties.
The next few months will be crucial as Grove and its partners navigate these uncharted waters. For now, the crypto world watches with bated breath, eager to see whether this ambitious venture will set the stage for a new chapter in financial history. And as always, there will be plenty of commentary—both optimistic and skeptical—along the way.
Source
This article is based on: Sky’s Grove Expands to Avalanche With $250M RWA Plan, Partnering With Centrifuge, Janus
Further Reading
Deepen your understanding with these related articles:
- US SEC ‘Crypto Mom’ clarifies: ‘Tokenized securities are still securities’
- Australia to test CBDCs, stablecoins in next stage of crypto play
- Monad Acquires Portal Labs to Expand Stablecoin Payments on High-Speed Blockchain
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
