Via iq.wiki
Centrifuge highlights advantages of AAA CLOs over Treasuries as tokenized fund gains traction
The real-world asset protocol argues that collateralized loan obligations beat government bonds on nearly every metric that matters to institutional investors.
Centrifuge, the blockchain protocol focused on tokenizing real-world assets, is making a pointed case that US Treasuries aren’t the safe-haven slam dunk investors assume them to be. In a recent social media post, the protocol laid out why AAA-rated collateralized loan obligations deserve a closer look: higher credit ratings, floating-rate exposure, near-zero duration risk, and excess yield over government bonds.
The case against Treasuries
AAA CLOs are floating-rate instruments linked to benchmarks like SOFR (the Secured Overnight Financing Rate). When rates move, their coupons adjust accordingly. The duration risk on AAA CLOs is near zero.
AAA CLOs actually carry higher credit ratings than US Treasuries in certain rating agency frameworks. CLO tranches are structured with layers of subordination that protect AAA holders, and rating agencies evaluate them accordingly. AAA CLOs also offer a spread over SOFR, generating excess return compared to Treasuries of similar credit quality.
Centrifuge’s tokenized CLO play
Centrifuge has skin in the game through its Janus Henderson Anemoy AAA CLO Fund, known by its ticker JAAA. JAAA received a $1 billion allocation from Sky/Grove in June 2025. Hundreds of millions in total value locked are now allocated to the fund.
Centrifuge’s broader platform has crossed $1 billion in onchain value. The protocol also introduced tokenized high-yield corporate bond strategies in partnership with New York Life Investment Management.
A partnership with Kraken Institutional announced in June 2026 allows JAAA to be held in qualified custody, meeting specific compliance requirements for regulated institutions.
Why this matters for crypto investors
There are risks. CLOs are backed by pools of leveraged loans, and while AAA tranches sit at the top of the capital structure with significant protection, they’re not immune to systemic credit events. The tokenization layer adds its own considerations: smart contract risk, oracle dependencies, and the relatively untested nature of onchain settlement for complex structured products.