Asset manager Janus Henderson (AUM $360 billion) is getting involved in tokenization. While Franklin Templeton, BlackRock and WisdomTree have issued tokenized Treasuries directly, instead Janus’ first step is a partnership with an existing fund, the Anemoy Liquid Treasury Fund (LFT) with $36 million assets under management (AUM). The collaboration also includes Anemoy founder, real world asset (RWA) tokenization firm Centrifuge.
Janus will serve as sub-advisor to the LTF and its wholly-owned subsidiary Tabula will manage the fund’s operations and portfolio.
In the past few weeks the total volume of Treasuries tokenized on public blockchains has surpassed $2 billion, with BlackRock and Franklin Templeton leading the way with a combined 43% market share. The rest of the top ten offerings are managed by startups. The top ten together account for 96% of the market capitalization.
“Our innovation strategy is focused on preparing for the possibility that blockchain technology will transform traditional finance in the long term, and this partnership represents a unique opportunity to help shape this future, while also providing stable and compliant solutions for on-chain markets,” said Nick Cherney, Head of Innovation at Janus Henderson.
For crypto investors, Treasuries provide a store of value that earns a yield compared to stablecoins, which often do not. For the broader investment community, a key benefit of tokenized Treasuries is the ability to switch into and out of a money market fund instantly, often with instant settlement.
“The intersection of DeFi, TradFi, and systematic investing is an area that should create huge opportunities for investors in the coming years. It is a natural overlap between the rapid expansion of ETF solutions and the need to underpin digital investments with stable, liquid stores of value, like US Treasury bills”, said Michael John Lytle, Tabula’s CEO.
Beyond tokenized Treasuries?
Janus also referenced its recent agreement to acquire the majority of Victory Park Capital Advisors, the global private credit manager, which caters to established firms, but also the DeFi ecosystem. This appears to be more than a hint that it is eyeing tokenized private credit, an area viewed as low hanging fruit.
A statement said that “Janus Henderson, Anemoy and Centrifuge are ideally positioned to lead the way in fixed income tokenization, providing new avenues and innovative options for institutional products, and enhancing the utility of on-chain capital markets.”
