#SKY Sky’s new DeFi protocol Grove launches with $1B backing to bring institutional credit onchain: Sky Protocol’s decentralized finance network has launched a new institutional-grade credit protocol with a $1 billion investment into tokenized credit.

Grove, a DeFi credit infrastructure developed as part of the Sky (SKY) ecosystem, was announced in a press release on June 25. At launch, the Sky ecosystem allocated $1 billion to Grove for investments in the Janus Henderson Anemoy AAA CLO Strategy, a fully tokenized fund created in collaboration with Centrifuge.

Run by the same team that manages Janus Henderson’s $21 billion AAA CLO ETF, the strategy provides DeFi with access to a traditionally off-chain asset class known for yield stability and capital preservation. This marks the first time a collateralized loan obligation investment strategy has been deployed fully onchain.

Grove is designed to serve as a capital routing layer between onchain protocols and traditional asset managers. Through Grove’s infrastructure, crypto-native projects can deploy idle reserves into diversified, regulated vehicles, without leaving the blockchain environment. The non-custodial system allows for flexible capital allocation.

A founding group of TradFi and DeFi veterans from Citigroup, Deloitte, BlockTower Capital, and Hildene Capital worked with Grove Labs, a division of Steakhouse Financial, to incubate the protocol.

Sky co-founder Rune Christensen noted that the protocol’s long-term goal is to build an open, decentralized capital network. Grove’s launch, he said, advances that mission by adding a new layer of asset diversity to the system’s real-world asset portfolio.As part of its roadmap, Grove will continue to facilitate allocations between asset managers and crypto-native protocols, positioning itself as a key liquidity engine for DeFi.$BTC