JAAA becomes the largest tokenized collateral asset on Aave Horizon

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The tokenized Janus Henderson AAA CLO fund now holds about $47 million in deposits on Aave's permissioned institutional market

Mon 9 Nov 2026 · 13:06 EST · 3 min read

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Aave Horizon has a new heavyweight. JAAA, the token representing shares of the Janus Henderson Anemoy AAA CLO Fund, is now the largest tokenized collateral asset on the platform, with about $47 million deposited.

What JAAA is doing on Aave Horizon

Aave Horizon is a permissioned market that launched in 2025. It is a licensed fork of Aave V3, the lending protocol, rebuilt for qualified institutional participants on Ethereum.

Approved participants deposit tokenized real-world assets, or RWAs, and borrow stablecoins against them.

JAAA fits that model neatly. The tokenized share class went live on-chain in mid-2025 through Centrifuge, a platform for bringing traditional assets onto blockchains.

The deposit figure has moved around. JAAA’s supply on Aave Horizon reached approximately $51.9 million as of October 15, 2026. In late October 2026, deposits fluctuated in a range between $40 and $50 million.

Much of that supply is not sitting idle. It is reportedly held in reserve to back loans totaling $45 million, which suggests borrowers are actually using the collateral rather than parking it for show.

The risk parameters could get looser

On October 15, 2026, LlamaRisk proposed raising JAAA’s reserve-tier loan-to-value ratio from 81% to 87%.

Loan-to-value, or LTV, sets how much you can borrow against your collateral. At 81%, every $100 of JAAA supports up to $81 in stablecoin borrowing. At 87%, the same deposit would support up to $87.

The proposal would also lift JAAA’s liquidation threshold from 86% to 89%. That threshold is the tripwire. Once a borrower’s debt crosses that share of their collateral value, the position can be liquidated.

The reasoning here leans on the fund’s track record. The proposed changes reflect JAAA’s redemption history and liquidity metrics. The fund processed 93 redemptions totaling $717.3 million in the prior year.

A smaller fund with a bigger on-chain role

JAAA’s total assets under management ranged between $585 million and $687 million in 2026, down from peaks above $1 billion.

So the fund has shrunk while its on-chain footprint has grown. The tokenized share class is finding a specific job, serving as borrowable collateral, even as overall assets under management have pulled back from their highs.

The roughly $47 million on Aave Horizon is a modest slice of a fund that size. It is, however, enough to make JAAA the top tokenized collateral asset on the platform.

What this means for institutional DeFi

If the higher LTV and liquidation threshold go through, JAAA becomes a more capital-efficient asset to borrow against. That could attract more deposits, or encourage existing holders to borrow more against what they already have.

Higher leverage means thinner cushions. A borrower at 87% LTV has less room for error than one at 81%, and an 89% liquidation threshold leaves a narrower gap between normal operations and a forced sale. The fund’s redemption record supports the case for looser terms, but past liquidity is not a guarantee of future liquidity.

When a single asset becomes the largest collateral type on a platform, its health starts to carry more weight in the market’s overall risk picture. The swing in deposits between $40 million and $50 million in late October is a reminder that these figures can move quickly.

Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.