Grove Finance launches with a $250m RWA investment on Avalanche

Grove Finance, an institutional-grade credit protocol in the Sky ecosystem, will go live on Avalanche, deploying up to $250 million in real-world assets to bolster the layer-1 blockchain’s tokenization traction.

Grove, introduced recently as an institutional-grade platform designed to accelerate the adoption of the decentralized stablecoin USDS on Sky, is set to expand to Avalanche (AVAX). 

The project aims to support a credit engine that drives the next phase of tokenized real-world assets tapping into USDS yield. Its launch on Avalanche targets up to $250 million in RWA value on the network, according to an announcement. 

Why is this important?

As the crypto market expands, going live on Avalanche could be a key development. Primarily, its about its potential to drive further adoption of tokenized assets on the platform. That will include stablecoins, U.S. Treasuries, institutional alternative funds and public equity.

Initially, Grove Finance’s launch allows for this traction by bringing on board major RWA players such as Centrifuge and Janus Henderson, an asset manager with over $373 billion in assets under management.

The platform is tailored for institutional capital flows, built to make access to credit markets easier and efficient for onchain protocols, asset managers, and decentralized autonomous organizations.

Grove counts Deloitte, Citigroup and BlockTower veterans among its founding members, and targets the  multi-trillion-dollar RWA market.

Avalanche will be a key strategic partner in this, the Grove team said.

Avalanche’s RWA market

Institutional-grade RWA products set to launch on Avalanche amid this partnership includes the Janus Henderson Anemoy AAA CLO Fund and the Janus Henderson Anemoy Treasury Fund. 

According to rwa.xyz, the Avalanche network currently boasts deployed tokenized assets such as BlackRock’s BUIDL and Franklin Templeton’s BENJI – U.S. Treasuries debt, also available on other chains. The majority of onchain value on Avalanche is however in stablecoins.

VanEck announced the launch of its digital assets alpha fund on Avalanche in May. Meanwhile, blockchain platform Watr said in April it planned to use Avalanche for its onchain venture targeting the $20 trillion commodities market.