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Connecting Conventional Finance with Blockchain: Falcon Introduces JAAA as a Collateral Option

Connecting Conventional Finance with Blockchain: Falcon Introduces JAAA as a Collateral Option

Bitget-RWA2025/11/25 17:48
By:Bitget-RWA

- Falcon Finance expands DeFi collateral options by accepting Centrifuge's JAAA token, a $1B+ TVL investment-grade CLO portfolio, for USDf stablecoin minting. - JAAA enables real-world corporate credit exposure within DeFi while maintaining asset ownership, transforming static debt into on-chain liquidity according to protocol documentation. - Centrifuge CEO Bhaji Illuminati highlights the partnership's role in advancing on-chain financial infrastructure by directly using tokenized RWAs as collateral. - Fa

Falcon Finance, a decentralized finance (DeFi) platform, has broadened its collateral options by now accepting Centrifuge's

token—a real-world asset (RWA) that represents a diversified portfolio of corporate credit—as eligible collateral for issuing its stablecoin, USDf . This development is a notable advancement in connecting traditional finance with blockchain technology, allowing investors to utilize high-quality structured credit assets within DeFi for liquidity and yield opportunities.

JAAA, overseen by

and boasting over $1 billion in total value locked (TVL), is a tokenized collateralized loan obligation (CLO) portfolio that provides access to short-term, investment-grade corporate credit . With the addition of JAAA, enables users to retain their exposure to real-world credit assets without liquidating their positions, while also unlocking liquidity through USDf. This approach turns static corporate debt into active on-chain collateral, supporting Falcon’s goal of building a cross-collateralized DeFi ecosystem .

Connecting Conventional Finance with Blockchain: Falcon Introduces JAAA as a Collateral Option image 0

The adoption of the JAAA token comes after a period of rapid expansion in its usage and scale. Janus Henderson’s AAA CLO ETF (JAAA)

in 2024, fueled by robust investor interest in high-yield, low-volatility fixed-income products . Managed by a team of CFA charterholders, the fund invests solely in AAA-rated CLO tranches, delivering monthly payouts with limited sensitivity to interest rate changes . This achievement highlights a growing trend toward tokenized RWAs as institutional-grade assets become more prominent in decentralized finance.

Bhaji Illuminati, CEO of Centrifuge Labs, highlighted the significance of the collaboration for on-chain financial infrastructure: "Tokenizing RWAs is only the beginning. The true innovation is realized when these assets serve as collateral directly onchain. By enabling JAAA and JTRSY to facilitate new credit mechanisms through Falcon Finance, this partnership brings added value to holders and advances the industry toward a fully interoperable, onchain financial landscape

."

Falcon Finance’s strategy for RWAs aims to separate collateral risk from yield generation. The economics of USDf are built on the protocol’s market-neutral strategy stack, rather than relying on the returns of underlying assets, which ensures consistent performance across various collateral types

. This design lets users use JAAA as collateral while still benefiting from corporate credit yields, a feature that Artem Tolkachev, Falcon’s Chief RWA Officer, considers crucial for expanding RWA adoption: "The market is shifting from tokenized Treasuries to more complex, higher-yield credit assets. Our mission is to facilitate this evolution by providing liquidity for any well-structured tokenized asset ."

The JAAA token’s performance has closely tracked its ETF equivalent, with a trailing 12-month distribution yield of about 5.5% as of November 2025

. Its stability and broad diversification—spanning more than 500 CLO tranches—make it a reliable, high-credit-quality asset for DeFi use cases. Market observers point out that JAAA’s integration into DeFi matches the increasing demand for yield in a low-rate environment, especially as traditional options like money market funds and ultra-short bond ETFs underperform .

This partnership signals the evolution of the RWA sector, where structured credit assets are now seen as practical on-chain collateral. Falcon Finance’s move into RWAs, along with its recent launch of JTRSY—a short-term Treasury product—demonstrates a strategic shift toward a broader range of institutional-grade assets

. As DeFi platforms work to incorporate real-world financial products, collaborations like this could reshape liquidity and capital efficiency within decentralized finance.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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