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%.
