Sky ecosystem newcomer Grove gets $1 billion grant to advance RWA business
On June 25, Coindesk reported that Grove, a decentralized financial protocol focused on creating an institutional-grade credit infrastructure, officially launched on Wednesday and announced a $1 billion strategic investment commitment in tokenized assets.DeFi lending giant Sky is allocating $1 billion in funding to the Grove protocol to invest in tokenized Collateralized Loan Obligations (CLOs).
The aims to build a bridge between DeFi and traditional financial assets by bringing on-chain funding into regulated credit investments (with a focus on Collateralized Loan Origination Certificates CLOs.) Grove’s infrastructure allows crypto-native protocols and asset management firms to invest in real-world assets (RWAs), thereby revitalizing unused reserves and generating returns independent of the crypto market.
The protocol was incubated by DeFi specialist Steakhouse Financial, which played a key role in introducing RWAs to the Sky ecosystem.