Grove, a newly launched decentralized finance (DeFi) protocol, has received a $1 billion allocation from the DeFi lending giant Sky to invest in tokenized collateralized loan obligations (CLOs). The protocol aims to connect traditional financial assets with decentralized finance, allowing crypto-native protocols to access real-world asset investments and generate yields independent of crypto markets. As part of the Sky Ecosystem, Grove introduces a new governance model with autonomous units called 'stars', further evolving the former MakerDAO framework. Grove's immediate focus is on the Janus Henderson Anemoy AAA CLO Strategy, a blockchain fund that specializes in tokenized credit investments. The founding team, composed of finance veterans from firms like Deloitte and Citibank, was incubated by Steakhouse Financial, which has been crucial in integrating real-world assets into the Sky system. With increasing demand for diversified on-chain assets, Grove's launch marks a significant development in facilitating access to institutional-grade CLOs in the DeFi landscape.

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