Asia Morning Update: DeFi to Be Outpaced by Tokenized Assets, According to Chronicle Founder

Chronicle Partners with Grove Protocol to Power $1B Tokenized Credit Push

Chronicle, a leading oracle infrastructure provider, has been named the exclusive data partner for Grove Protocol, a newly launched institutional-grade credit platform backed by a $1 billion allocation into tokenized real-world assets.

Grove, part of the Sky ecosystem where each platform is known as a “Star,” made its debut in June with a mission to bridge traditional finance and DeFi through tokenized collateralized loan obligations (CLOs). Among its portfolio is the Janus Henderson Anemoy AAA CLO Strategy on Centrifuge — a key vehicle offering diversified yields to protocols and asset managers.

Niklas Kunkel, founder of Chronicle, told CoinDesk that the role of oracles in DeFi is undergoing a major transformation.

“Oracles started as general data feeds but became boxed into price feeds,” he said. “That’s finally changing. Now they’re becoming critical tools for risk management, especially in the tokenized credit space.”

Kunkel believes tokenized assets represent the next major wave of growth in DeFi, offering what he calls a “multi-trillion-dollar liquidity injection opportunity.” However, he also stressed the need for tighter scrutiny around real-world assets (RWAs), noting that their off-chain nature makes robust oracle support essential for risk assessment.

“RWAs aren’t crypto-native, so they need a different standard of oversight,” he added. “Oracles can inject context and transparency into otherwise opaque instruments.”

As regulators begin exploring real-time compliance infrastructure for digital assets, Kunkel sees a broader future role for oracles in governance.

“In traditional markets, compliance comes through quarterly filings,” he said. “In DeFi, finality happens in seconds. Once regulators understand what oracles can do, they’ll likely become major adopters of the technology. Oracles are evolving into regtech.”

Chronicle’s tie-up with Grove is a key step in its push to dominate the oracle segment for tokenized assets — a market Kunkel believes may soon outgrow DeFi’s current focus on crypto-native instruments.

Markets Overview

Bitcoin (BTC): Trading at $119,000, up 2% over 24 hours. JPMorgan notes that improving sentiment in equities could boost BTC as investors rotate into riskier assets.
Ethereum (ETH): Up over 13% to above $4,200, driven in part by the liquidation of short positions, according to Bizantine Capital’s March Zheng.
Gold: Hovering near record levels. Weaker U.S. economic data, trade uncertainty, and a dovish Fed outlook continue to support the metal. Inflation and retail sales data later this week could dictate direction.