Centrifuge highlights advantages of AAA CLOs over Treasuries as tokenized fund gains traction
RWA Signal Insight
Private CreditCentrifuge is challenging the dominance of U.S. Treasuries in the RWA sector by advocating for the superior yield and risk profile of AAA-rated collateralized loan obligations (CLOs). The protocol argues that AAA CLOs offer floating-rate exposure linked to SOFR, near-zero duration risk, and higher credit ratings than government bonds due to structural subordination. Centrifuge has demonstrated this strategy through its Janus Henderson Anemoy AAA CLO Fund, ticker JAAA, which secured a $1 billion allocation from Sky/Grove in June 2025. The broader Centrifuge platform has now surpassed $1 billion in total onchain value, signaling significant institutional interest in complex structured products. To facilitate institutional adoption, a June 2026 partnership with Kraken Institutional enables JAAA to be held in qualified custody. Additionally, Centrifuge has expanded its offerings to include tokenized high-yield corporate bonds in collaboration with New York Life Investment Management. While these assets provide excess yield, the protocol acknowledges inherent risks, including systemic credit events and the technical complexities of onchain settlement for structured finance. This shift highlights a maturing RWA market moving beyond simple government debt toward more sophisticated, yield-optimized financial instruments.
Key points
- Centrifuge platform total onchain value has officially crossed the $1 billion milestone.
- Sky/Grove allocated $1 billion to the JAAA fund in June 2025.
- Kraken Institutional partnership enables qualified custody for JAAA tokens as of June 2026.
- AAA CLOs provide floating-rate exposure and excess yield compared to U.S. Treasuries.
Background
Centrifuge is a decentralized finance protocol designed to bridge real-world assets onto the blockchain, allowing businesses to tokenize and finance illiquid assets. It utilizes a structured approach where assets are pooled and tokenized, enabling investors to gain exposure to credit markets while providing issuers with access to decentralized liquidity. The platform focuses on transparency and compliance to facilitate institutional-grade participation in onchain finance.