Kraken Custody Lists JAAA, First Tokenized CLO With 24/7 Settlement
In brief
- JAAA is the first tokenized real-world asset in Kraken Custody, representing ~$686 million in assets
- Token settles instantly 24/7, versus T+1 or T+2 in traditional custody frameworks
- Institutions can post JAAA as collateral and deploy it across vault strategies simultaneously
Instant Settlement, Regulated Custody
The underlying strategy is a AAA-rated collateralized loan obligation managed by Janus Henderson, a firm overseeing roughly $21 billion in its off-chain CLO strategy. Centrifuge handles the tokenization infrastructure. The JAAA token currently represents approximately $686 million in assets and offers around a 3.66% annualized yield over seven days.
JAAA inside Kraken Custody settles instantly, 24 hours a day, seven days a week, compared to the T+1 or T+2 settlement windows typical of traditional custody. That speed matters. Institutions holding JAAA in Kraken Custody can post it as collateral through Kraken Prime and simultaneously deploy it into various vault strategies.
Real-World Assets Meet DeFi Rails
The token originally launched in June 2025 with a $1 billion seed from the Sky ecosystem, the governance layer formerly known as MakerDAO. JAAA has already been integrated with Aave Horizon, where it has served as leveraged collateral for lending. Ethena allocated $200 million to JAAA in early June 2026.
The Kraken custody integration was announced on June 25, 2026. JAAA's yield comes from AAA-rated corporate loan obligations, which carry credit risk even at the senior tranche level. A CLO is essentially a bundle of corporate loans sliced into tranches by risk level. The AAA tranche sits at the very top of the credit quality stack.
"JAAA inside Kraken Custody settles instantly, 24 hours a day, seven days a week, compared to the T+1 or T+2 settlement windows typical of traditional custody."
Frequently asked questions
What is JAAA and how does it differ from traditional CLO funds?
JAAA is a tokenized version of a AAA-rated collateralized loan obligation managed by Janus Henderson. Unlike traditional CLOs held in off-chain custody, JAAA settles instantly on-chain 24/7 inside Kraken Custody, compared to T+1 or T+2 windows in traditional markets. It currently represents approximately $686 million in assets.
Can I use JAAA as collateral on DeFi platforms?
Yes. Institutions holding JAAA in Kraken Custody can post it as collateral through Kraken Prime and simultaneously deploy it into various vault strategies. JAAA has also been integrated with Aave Horizon, where it serves as leveraged collateral for lending.
What yield does JAAA offer?
JAAA currently offers around a 3.66% annualized yield over seven days. The yield comes from AAA-rated corporate loan obligations, which carry credit risk even at the senior tranche level.
