Kraken Launches Tokenized AAA CLO Fund for Institutional Investors

Kraken Custody has made a significant move in the world of institutional investing by launching its first tokenized AAA CLO (Collateralized Loan Obligation) fund, JAAA. This fund is a tokenized version of the Janus Henderson Anemoy AAA CLO Fund, which is managed off-chain with $21 billion in assets. The tokenized version offers about $686 million in assets and a 3.66% annualized yield.

This move allows institutional investors to have onchain exposure to investment-grade yields, providing them with the opportunity to invest in high-quality debt securities. The fund also enables 24/7 onchain settlement and use as collateral in DeFi protocols, enhancing operational efficiency and flexibility.

Kraken's partnership with Centrifuge signals a broader move to integrate real-world assets into regulated crypto custody, lowering barriers for institutions to access tokenized asset yields. This is an important step towards making institutional-grade investments more accessible to the crypto market.