Connecting Conventional Finance with Blockchain: Falcon Introduces JAAA as a Collateral Option
- 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
JAAA, overseen by
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)
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
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
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
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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