Aave Partners with Centrifuge and Resolv for $100 Million Tokenized Credit Strategy

The intersection of traditional finance and decentralized finance (DeFi) continues to evolve, with the latest development seeing DeFi protocol Aave partnering with Centrifuge and Resolv to launch a $100 million tokenized credit strategy. This move marks the largest real-world asset loop trade in DeFi history, as Centrifuge's tokenization technology allows traditional credit assets to be used on-chain.

The tokenized credit fund, JAAA, is an on-chain version of Janus Henderson's AAA-rated CLO investment fund and will be deployed through Aave Horizon, the institution-focused deployment of the largest DeFi protocol. By using JAAA as collateral inside Aave's lending markets, Resolv can generate yield and support its stablecoin, while also managing risk more actively.

This integration of traditional credit into DeFi is a significant development in the growth of decentralized finance. The tokenized RWA market continues to grow, with distributed asset value now above $25 billion, up about 7% over the past month, according to RWA.xyz.