Avalanche was conceived as a high‑performance L1 designed for institutional finance, but its next phase focuses on RWA expansion. Instead of competing purely on throughput or virtual machine compatibility, Avalanche is positioning itself as the premier venue for tokenizing credit, treasuries and other regulated assets.
They recently announced that Grove Finance would deploy up to ~$250 million in RWAs on Avalanche via Centrifuge and Janus Henderson, adding new institutional partners and products to the ecosystem.
In this edition, we look at Avalanche’s institutional architecture, Grove’s RWA deployment and its impact, and why tokenized credit and treasuries could make Avalanche the go‑to RWA chain.
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Why Avalanche Matters for RWAs
Avalanche was built to deliver sub‑second finality and high throughput through its Avalanche consensus, allowing developers to spin up custom L1s known as subnets tailored for compliance and performance. These properties make it well suited for institutional deployments where deterministic settlement and low fees are non‑negotiable.
To-date, Avalanche supports over $180 million in tokenized RWA value across 35 assets.
These assets already include some major TradFi products like tokenized treasuries, credit products, institutional funds, and alternative assets.
Tokenized treasuries and credit products – OpenTrade connects U.S. Treasury bills and institutional credit to DeFi, while Backed Finance brings regulated equities like SPY and COIN on-chain under Swiss frameworks.
Institutional funds – BlackRock’s BUIDL fund, issued via Securitize, can be held in an Avalanche wallet and used as DeFi collateral. BUIDL contributes $53 million to their total RWA TVL.
Reinsurance and alternative assets – RE tokenizes reinsurance premiums, creating a non‑correlated yield source.
Avalanche’s ability to run custom subnets means asset managers can launch dedicated chains with their own validators and compliance rules. The network supports programmable stablecoins like avUSD and savUSD, as well as permissionless lending and liquid staking protocols like sAVAX, ggAVAX, and yyAVAX.
Grove, Centrifuge & Janus Henderson
In late July 2025, Avalanche announced that Grove Finance would launch on the network with a target deployment of up to ~$250 million in RWAs. Grove, an institutional credit protocol, is partnering with tokenization pioneer Centrifuge and $373 billion asset manager Janus Henderson to bring two funds on-chain:
Janus Henderson Anemoy AAA CLO Fund (JAAA) – a collateralized loan obligation (CLO) fund that delivers regulated exposure to senior credit.
Janus Henderson Anemoy Treasury Fund (JTRSY) – a short‑duration U.S. Treasury strategy.
Grove’s capital will more than double Avalanche’s RWA footprint. It also brings powerful new partners into the ecosystem, deepening ties with Janus Henderson and Centrifuge. The broader momentum is evident from other institutional deployments on Avalanche, including Apollo’s ACRED, WisdomTree’s tokenized funds, KKR’s Healthcare Growth Fund and other products from BlackRock, Franklin Templeton and VanEck.
RWA Adoption on Avalanche
For users and developers – Avalanche’s deepening RWA ecosystem provides new primitives for building yield strategies and fixed‑income products.
Developers can integrate tokenized CLOs and treasuries into lending markets or automated vaults, while retail users gain access to yield sources traditionally reserved for institutions.
For capital allocators – Avalanche is emerging as a credible alternative to Ethereum for institutional RWAs. Its high‑performance architecture, low fees and proven subnets make it attractive for asset managers seeking to tokenize funds.
The Grove deployment signals that large credit portfolios can be operationalized on-chain, potentially unlocking liquidity and improving transparency for investors. The network’s collaboration with Visa on global stablecoin settlements and record DEX volumes suggests that Avalanche is building the infrastructure for both payments and capital markets.
