Resolv and Centrifuge Deploy $100 Million Tokenized Credit Fund on Aave Horizon
February 25, 2024 – DeFi platforms Resolv and Centrifuge announced the launch of a leveraged credit strategy that places up to $100 million of a tokenized AAA‑rated loan pool (JAAA) into Aave’s institutional lending market, Aave Horizon. The move marks the largest real‑world‑asset (RWA) loop in decentralized finance to date.
What is happening?
Resolv, the protocol behind the USR stablecoin that currently holds about $162 million in total value locked (TVL), will receive the JAAA token – a blockchain‑compatible version of Janus Henderson’s AAA‑rated CLO fund – via Centrifuge’s asset‑tokenisation infrastructure. Rather than simply holding the token, Resolv will pledge it as collateral on Aave Horizon, allowing the protocol to borrow at on‑chain rates while the underlying asset continues to generate traditional credit yields.
Aave, the most capitalised lending platform in the DeFi ecosystem with roughly $28 billion in TVL according to DeFiLlama, operates Horizon as a dedicated suite for institutional participants. By feeding tokenised credit into this layer, Resolv can capture the spread between the fund’s high‑grade fixed‑income returns and the borrowing cost on Aave.
Why it matters
- Scale of tokenised RWA exposure: The $100 million allocation surpasses any previous RWA‑centric loop trade, underscoring growing confidence in on‑chain representations of institutional assets.
- Diversification of yield sources: Resolv’s strategy aims to offset the volatility of crypto‑derived yields with the stability of AAA‑rated fixed‑income cash flows, a tactic that could become a template for other stablecoin issuers.
- Infrastructure integration: The workflow showcases a complete pipeline—stablecoin issuance (Resolv), asset tokenisation (Centrifuge), and leveraged lending (Aave Horizon)—functioning at a meaningful scale for the first time.
Industry perspectives
Nadim Chamoun, head of business development at Centrifuge Labs, described the deployment as “the next phase of tokenisation: utility at scale,” highlighting how tokenised assets are moving beyond mere on‑chain storage toward active financial services.
Tim Shekikhachev, co‑founder of Resolv Labs, framed the move as a prudent diversification play: “Capital can flow from USR, through Centrifuge’s tokenisation stack, into Aave’s leverage layer, ultimately backing AAA‑rated securities managed by Janus Henderson. DeFi won’t replace traditional finance; it will amplify it by plugging into it.” He added that the strategy helps balance returns when crypto borrowing rates compress, allowing the protocol to maintain yield consistency.
Broader market context
The tokenised RWA market continues to expand, with total on‑chain value now exceeding $25 billion—a 7 % increase over the past month, according to data aggregator RWA.xyz. Centrifuge alone reports a TVL of $1.35 billion, reflecting its pivotal role in bridging real‑world credit instruments with decentralized protocols.
Aave’s institutional arm, Horizon, has been positioning itself as a bridge for large‑scale, low‑risk assets, and the new partnership with Resolv and Centrifuge reinforces that narrative.
Key takeaways
| Takeaway | Implication |
|---|---|
| $100 M tokenised credit fund deployed | Sets a new benchmark for RWA exposure in DeFi. |
| Resolv uses JAAA as collateral on Aave Horizon | Enables a yield‑boosting spread between traditional credit returns and on‑chain borrowing costs. |
| Full pipeline now operational | Capital flows from a stablecoin, through tokenisation, to leveraged lending—demonstrating end‑to‑end integration. |
| Diversification of stablecoin revenue | Reduces reliance on volatile crypto yields and ties returns to macro‑driven fixed‑income markets. |
| Growth of tokenised RWA sector | Rising on‑chain asset values suggest increasing institutional interest and confidence in DeFi infrastructure. |
Outlook
If the strategy delivers the expected risk‑adjusted returns, it could encourage other stablecoin projects and DeFi protocols to incorporate high‑quality tokenised assets into their balance sheets. As the RWA ecosystem matures, the blend of traditional finance credit quality with DeFi’s programmable liquidity may become a cornerstone of next‑generation decentralized financial services.
Source: https://thedefiant.io/news/defi/resolv-and-centrifuge-launch-usd100m-tokenized-credit-strategy-on-aave
