Centrifuge Takes Aim at US Treasuries with AAA CLO Advantages

Centrifuge, a blockchain protocol focused on tokenizing real-world assets, has taken aim at US Treasuries as a safe-haven investment. According to the company, AAA-rated Collateralized Loan Obligations (CLOs) offer several advantages over government bonds, including higher credit ratings, floating-rate exposure, and near-zero duration risk.

Unlike Treasuries, which are tied to fixed interest rates, CLOs are linked to benchmarks like SOFR, the Secured Overnight Financing Rate. When interest rates fluctuate, the coupons on AAA CLOs adjust accordingly, providing a more dynamic return. Additionally, these instruments offer excess yield over government bonds of similar credit quality.

Centrifuge's tokenized fund, the Janus Henderson Anemoy AAA CLO Fund (JAAA), has gained traction with a $1 billion allocation from Sky/Grove in June 2025 and hundreds of millions in total value locked. The protocol has also introduced tokenized high-yield corporate bond strategies in partnership with New York Life Investment Management.

While CLOs are not without risk, Centrifuge's platform has crossed $1 billion in on-chain value, demonstrating the growing interest in this asset class. However, as the company notes, there are considerations to be aware of, including smart contract risk and oracle dependencies.