Crypto-native asset managers are becoming a significant force in decentralized finance (DeFi). Since January 2025, their on-chain capital has surged from $1 billion to over $4 billion.
Evolution of Crypto Asset Management
According to a joint report by the analytics platform Artemis and DeFi yield platform Vaults, crypto asset management firms such as Re7, Gauntlet, and Steakhouse Financial are not only deploying capital across diverse opportunities but also implementing risk management practices and advanced allocation strategies, especially within the stablecoin sector. The Morpho Protocol now hosts nearly $2 billion of managed capital, indicating rising institutional interest in DeFi.
Institutions and DeFi as Infrastructure
The report stated that institutional perspectives on crypto are shifting, especially as US regulation evolves and DeFi platforms mature. DeFi is no longer seen as an unregulated threat but is increasingly viewed as a customizable, integrated financial layer. Many fintech firms and crypto wallets are using DeFi as hidden infrastructure, abstracting its complexities to improve user experience.
Market Prospects of DeFi
Institutions primarily engage with DeFi through three avenues: stablecoin yield, crypto yield, and borrowing. These services are embedded in familiar, centralized apps, masking the underlying DeFi mechanisms. For example, Coinbase and PayPal offer stablecoin yields via USDC and PYUSD, respectively.
Thus, crypto-native asset managers and the new opportunities provided by DeFi make this market increasingly attractive to institutional investors, potentially leading to further development and integration of decentralized finance into traditional business models.
