KEY TAKEAWAYS
- Grove launches on Avalanche with a $250 million target, enhancing its institutional-grade credit protocol with real-world assets.
- Strategic partnerships with Centrifuge and Janus Henderson aim to modernize infrastructure and expand Avalanche’s institutional reach.
- Centrifuge plays a crucial role in integrating real-world assets into DeFi, setting standards for institutional capital onchain.
- This initiative bridges DeFi and traditional finance, unlocking new market opportunities for large-scale credit strategies.
Grove, an institutional-grade credit protocol, is set to launch on the Avalanche blockchain with an initial deployment strategy targeting up to $250 million in real-world assets (RWAs). This strategic move aims to expand Avalanche’s institutional footprint in sectors such as stablecoins, fixed income, and alternative investments.
The launch introduces new ecosystem partners, including Grove, Centrifuge, and Janus Henderson, a $373 billion asset manager. Grove selected Avalanche as a strategic partner due to its commitment to RWAs and institutional finance. By leveraging Avalanche, Grove benefits from the network’s speed, low fees, and deterministic transaction finality, which are essential for operationalizing programmable credit strategies while maintaining regulatory alignment and institutional-grade performance standards.
Strategic Partnerships and Ecosystem Expansion
This deployment marks the first step in a broader roadmap designed to modernize legacy infrastructure, streamline institutional workflows, and create new products for both retail and institutional investors. Mark Phillips, Co-Founder of Grove Labs, stated that Avalanche’s long-term vision for real-world assets and its proven onchain operating history make it an ideal partner for Grove’s institutional credit infrastructure.
Grove will allocate into the Janus Henderson Anemoy AAA CLO Fund (JAAA), issued natively onchain through Centrifuge. Additionally, the Janus Henderson Anemoy Treasury Fund (JTRSY) will launch on Avalanche, further expanding the network’s footprint in high-quality institutional assets.
Role of Centrifuge and Future Prospects
Centrifuge, a pioneer in onchain credit infrastructure, has been instrumental in bringing real-world assets to decentralized finance (DeFi) since 2017. As a leading provider of infrastructure across multiple chains, Centrifuge continues to set the standard for institutional capital entering and operating onchain. Bhaji Illuminati, CEO of Centrifuge, emphasized the importance of scale, liquidity, and transparency in meeting institutional capital demands.
This partnership capitalizes on opportunities at the intersection of DeFi, traditional finance (TradFi), centralized finance (CeFi), and RWAs. The launch follows a series of institutional deployments on Avalanche, including Apollo’s ACRED, WisdomTree’s suite of tokenized funds, and KKR’s Healthcare Growth Fund.
Grove bridges DeFi with traditional markets through programmable and scalable onchain infrastructure. Developed by Grove Labs, a subsidiary of Steakhouse Financial, Grove aims to unlock a multi-trillion-dollar market for the DeFi era. Morgan Krupetsky, VP of OnChain Finance at Ava Labs, highlighted that this deployment demonstrates the feasibility of running complex, large-scale credit strategies natively onchain.
For more details, the official announcement can be found here.
Why This Matters: Impact, Industry Trends & Expert Insights
Grove’s launch of an institutional-grade credit protocol on the Avalanche blockchain, targeting $250 million in real-world assets, marks a significant step in integrating traditional finance with decentralized finance (DeFi).
According to a report by Cryptonomist, the key trend in 2025 is the rapid growth and institutional adoption of tokenized traditional assets, such as real estate and government bonds. This trend aligns with Grove’s strategy to leverage Avalanche for expanding its institutional footprint, showcasing the increasing integration of real-world assets with blockchain technologies.
Insights from Chainlink highlight the transformative potential of tokenized real-world assets in DeFi. This supports Grove’s initiative by demonstrating how tokenization can increase liquidity and transparency, bridging traditional markets with DeFi protocols on Avalanche.
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