Grayscale reports that over 3,000 onchain vaults collectively hold more than $7 billion, positioning these smart contract-driven structures as crypto’s next major product to catch Wall Street’s attention. These vaults resemble traditional collateralized loan obligations (CLOs) by pooling investor funds to generate risk-adjusted returns but operate entirely on blockchain networks like Ethereum, Base, and Solana.
Unlike conventional CLOs that depend on intermediaries such as custodians and trustees, onchain vaults use smart contracts to automate asset management and transactions. This shift offers investors real-time transparency into holdings and can cut administrative expenses while enhancing liquidity by enabling faster, trustless asset transfers.
Currently, the vault ecosystem is managed by 57 curators, with stablecoin-based strategies making up 79% of assets under management. Although the $7 billion locked in these vaults is modest compared to the roughly $1.5 trillion global CLO market, the lower cost and transparency could make onchain vaults an attractive alternative for traditional finance.
Zach Pandl, Grayscale’s head of research, underlines that vaults deliver full transparency and operational efficiency, potentially disrupting established credit products. However, the report notes that wider adoption will depend heavily on regulatory clarity in the US.
