Centrifuge and Resolv said on Feb. 25 that they are deploying up to $100 million of JAAA, a tokenized AAA-rated credit fund, as leveraged collateral on Aave Horizon – marking decentralized finance’s (DeFi) largest real-world asset (RWA) loop trade to date.
Resolv – a protocol that maintains the USR stablecoin with a total value locked of $162 million – is adding JAAA (an on-chain version of Janus Henderson’s AAA-rated CLO investment fund) to its system using Centrifuge’s tokenization technology. Centrifuge currently has a TVL of $1.35 billion.
Instead of just holding the fund, Resolv will use JAAA as collateral inside Aave’s lending markets to generate yield and support its stablecoin. Aave is the largest DeFi protocol, with nearly $28 billion in total value locked, according to DeFiLlama, while Aave Horizon is its institution-focused deployment.
The move shows how tokenized assets are increasingly being used in real financial products rather than just existing on-chain. It also comes as 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.
“Resolv allocating to JAAA and deploying it through Aave Horizon demonstrates the next phase of tokenization: utility at scale,” Nadim Chamoun, director of business development at Centrifuge Labs, told The Defiant.
Chamoun added that the strategy allows Resolv to manage risk more actively while earning the difference between traditional credit yields and on-chain borrowing rates.
For Resolv, the move is also part of a broader effort to diversify the sources of its returns. “Economically, diversification across markets makes clear sense for scalable capital allocators,” Tim Shekikhachev, co-founder of Resolv Labs, told The Defiant. “On-chain yields move with crypto leverage cycles, while global fixed-income markets are anchored in broader macro conditions.”
Shekikhachev added that when crypto rates fall, tokenized credit like JAAA can help balance returns.
“What’s finally unlocked now is that the full supply chain is functioning at scale: capital flows from Resolv USR, through Centrifuge’s tokenization infrastructure, into Aave Horizon’s leverage layer,” he said. “Ultimately, this ends up in AAA-rated assets managed by Anemoy and Janus Henderson, an industry leader in this segment. DeFi won’t replace traditional finance — it will scale by plugging into it.”