Sky Protocol Unveils $1B Onchain Credit Initiative with Launch of Grove

The initiative marks a pivotal step in merging traditional credit instruments with blockchain technology.

Announced on June 25, Grove debuts as part of the Sky ecosystem’s broader Endgame strategy — an ongoing reorganization aimed at modularizing the protocol into autonomous “Stars.” Grove now joins Spark as one of these Stars, with a focus on bridging decentralized capital with real-world, regulated financial products.

https://t.co/8K4VMzhV7d

— Grove Finance (@grovedotfinance) June 25, 2025

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, the strategy introduces a traditionally off-chain asset class to DeFi, 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, making this the first-ever fully onchain deployment of a CLO strategy.

Grove operates as a capital-routing layer between crypto-native projects and traditional asset managers. Its non-custodial infrastructure enables DeFi protocols to channel idle reserves into actively managed, diversified credit vehicles without leaving the blockchain environment. The aim is 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. The 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, Nick Cherney, 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 JTRSY. 

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.

 

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