Author: Alea Research
Compiled by: Tim, PANews
Avalanche was originally designed as a high-performance public chain for institutional-level finance, but its next phase of development will focus on the RWA field. Avalanche does not compete solely on throughput or virtual machine compatibility, but positions itself as the preferred platform for tokenized credit, Treasury bills, and other regulated assets.
According to recent news, Grove Finance plans to deploy approximately $250 million in RWA on the Avalanche blockchain through Centrifuge and Janus Henderson, which will introduce new institutional partners and financial products to the ecosystem.
In this article, we will introduce Avalanche's technical architecture for institutions, Grove's RWA deployment and its impact, and interpret why tokenized credit and Treasury bonds can make Avalanche the preferred public chain in the RWA field.
Why is Avalanche important for RWA?
The Avalanche platform, with its unique Avalanche consensus protocol, achieves sub-second transaction finality and high throughput, enabling developers to build customized layer-one networks: subnets that balance compliance and performance. These characteristics make the platform particularly suitable for institutional application scenarios, where deterministic settlement and low transaction costs have become rigid demands.
As of now, Avalanche has hosted nearly $180 million in tokenized RWA value, covering 35 asset classes.
These assets already include some important categories of traditional financial products, such as tokenized Treasury bonds, credit products, institutional funds, and alternative assets.
Tokenized Treasury bonds and credit products: OpenTrade connects short-term US Treasury securities and institutional credit to DeFi, while Backed Finance brings regulated stocks like SPY and COIN to the blockchain under the Swiss regulatory framework.
Institutional funds: BlackRock's BUIDL fund issued through Securitize can be deposited into Avalanche wallets and used as DeFi collateral. This fund contributed $53 million to institutional RWA TVL.
Reinsurance and alternative investments: RE tokenizes reinsurance premiums to create uncorrelated sources of income.
Avalanche's network supports custom subnet functionality, allowing asset management institutions to deploy dedicated chains equipped with independent validation nodes and compliance rule systems. The ecosystem is compatible with programmable stablecoins (such as avUSD and sAVAX) and supports permissionless lending protocols as well as various liquidity staking solutions (including innovative protocols like sAVAX, ggAVAX, and yyAVAX).
Collaboration between Grove, Centrifuge, and Janus Henderson
In late July 2025, Avalanche announced that the institutional credit protocol Grove Finance would go live on its platform, aiming to introduce about $250 million in RWAs. Currently, Grove is collaborating with tokenization pioneer Centrifuge and the $373 billion asset management giant Janus Henderson to drive the on-chain deployment of two funds.
Janus Henderson Anemoy AAA-rated Loan Collateral Securities Fund (JAAA): A loan collateral securities fund that allocates priority credit assets through regulated standards.
Janus Henderson Anemoy Treasury Fund (JTRSY): A strategy that invests in short-term US Treasury bonds.
The influx of Grove funds will more than double Avalanche's layout in the RWA field. This partnership will also introduce powerful new partners to the ecosystem, deepening strategic synergies with asset management giants Janus Henderson and decentralized asset protocol Centrifuge. Deployments of products from Apollo Global Management's ACRED, WisdomTree's tokenized funds, KKR's healthcare growth fund, as well as products from institutions like BlackRock, Franklin Templeton, and VanEck, all demonstrate Avalanche's overall strong development momentum at the institutional application level.
Adoption of RWA on Avalanche
For users and developers, Avalanche's continuously expanding RWA ecosystem provides new foundational components for constructing yield strategies and fixed-income products.
Developers can integrate tokenized loan collateral certificates and US Treasury bonds into lending markets or automated vault systems, allowing retail investors to venture into financial fields traditionally limited to institutional participants.
For asset allocators, Avalanche is gradually becoming a reliable alternative to Ethereum in the institutional RWA space. Its high-performance architecture, low fees, and proven subnet technology are significantly attractive to asset management institutions seeking to achieve fund tokenization.
Grove's deployment plan indicates that large credit portfolios have achieved on-chain operationalization, expected to unlock liquidity and enhance transparency for investors. The network collaborates with Visa in the global stablecoin settlement domain, coupled with record trading volumes on DEX, collectively confirming that Avalanche is building infrastructure for payment systems and capital markets.
