A AAA-rated collateralized loan obligation fund is now functioning as collateral on Ethereum.
Centrifuge’s tokenization infrastructure has turned the Janus Henderson Anemoy AAA CLO Fund, known as JAAA, into a usable collateral asset on Ethereum through a wrapped token called wJAAA. The integration, built through the 3F protocol, lets users deposit wJAAA into a dedicated market on the Morpho lending protocol, borrow USDC against it, and execute leveraged strategies.
How the plumbing works
JAAA is a tokenized fund that holds AAA-rated CLO tranches, the highest-rated slices of bundled corporate loans. Centrifuge wraps JAAA into wJAAA, a receipt token that lives natively on Ethereum. That wrapper is what makes it composable with DeFi lending markets.
On Morpho, the wJAAA/USDC market lets holders deposit their wrapped tokens and borrow stablecoins against them. The liquidation loan-to-value ratio sits at 98%, meaning users can borrow up to 98 cents of USDC for every dollar of wJAAA posted. Supply and borrow APYs currently hover between 3.3% and 3.7%.
JAAA’s rapid ascent across chains
JAAA has hit $1 billion in assets under management, making it one of the fastest-growing tokenized funds in existence.
Around June 9-10, a $200 million deployment of JAAA landed on Solana as part of Ethena’s collateral diversification strategy. Before that, $100 million in JAAA collateral loops were already running on Aave Horizon. Centrifuge has expanded its decentralized real-world asset standards across Ethereum, Base, Arbitrum, and Solana.
JAAA is positioned as the first fully onchain AAA-rated CLO fund. It offers low duration risk and daily liquidity. The fund is a collaboration between Janus Henderson, one of the largest asset managers globally, and Anemoy, which handles the tokenization layer. Centrifuge provides the rails that make the token interoperable across chains and protocols.
What this means for investors
Traditional finance has a deep, liquid market for AAA CLOs. But accessing leveraged strategies on those positions typically requires institutional relationships, margin accounts, and significant capital minimums. The wJAAA/Morpho integration compresses that entire workflow into a permissionless lending market on Ethereum.
If you’re earning the underlying JAAA yield on your collateral while borrowing USDC at rates within the 3.3% to 3.7% range, the spread between your collateral yield and borrowing cost determines your leveraged return. At a 98% LLTV, even modest spreads can be amplified significantly, though the risk of liquidation tightens proportionally.
The 98% LLTV is aggressive by any standard. If wJAAA ever trades at a discount to its underlying NAV, even briefly, liquidation cascades could follow. The daily liquidity feature of the underlying fund mitigates some of that risk, but DeFi markets can move faster than redemption windows. Oracle reliability for pricing a wrapped institutional credit product on-chain is another variable that hasn’t been stress-tested through a genuine credit event.
