Resolv and Centrifuge Deploy $100 Million Tokenized Credit Strategy on Aave

Centrifuge and Resolv announced on February 25 that they are allocating up to $100 million in JAAA. This is a tokenized AAA-rated credit fund. They are deploying it as leveraged collateral on Aave Horizon. This marks the largest real-world asset (RWA) loop trade in decentralized finance (DeFi) to date. Resolv is a protocol that maintains the USR stablecoin. It currently holds a total value locked of $162 million. Resolv is integrating JAAA into its system. JAAA is an on-chain version of Janus Henderson’s AAA-rated CLO investment fund. It uses Centrifuge’s tokenization technology. Centrifuge currently reports a TVL of $1.35 billion. Rather than simply holding the fund, Resolv will use JAAA as collateral within Aave’s lending markets. The goal is to generate yield and support its stablecoin. Aave is the largest DeFi protocol. It has nearly $28 billion in total value locked, according to DeFiLlama. Aave Horizon is its deployment focused on institutions. I believe we need to monitor the risk parameters closely as this scale of RWA integration increases.