Onchain Vaults are the Emerging Infrastructure for Fund Tokenization
- Tokenization Insight
- May 27
- 4 min read
Updated: 5 days ago
Onchain vaults, or pooled investment vehicles deployed on blockchain rails, have scaled rapidly from $24B AUM in 2023 to $131B in 2026, a 541% increase according to S&P Global.
Today, more than 90% of that capital remains tied to crypto-native strategies, where capital is deployed across crypto markets to generate yield. But the market is beginning to shift.
The 15,000% growth in tokenized MMF and 30,000% growth in tokenized assets since 2023 demonstrate increasing demand for regulated, institutionally familiar investment exposures delivered through onchain infrastructure.
As fund tokenization accelerates, onchain vaults are likely to evolve beyond crypto yield aggregation into a new operating layer for onchain capital aggregation and deployment, with significant implications for the asset management business.
In this Market Insight Note, we cover:
Where onchain vault AUM sits today
What onchain vaults unlock for fund tokenization
What needs to evolve for institutional adoption
Let’s dive in.
Where onchain vault AUM sits today?
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