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Onchain Vaults: Connecting Tokenized Assets with Securities Financing

Writer: Tokenization Insight
Tokenization Insight
2 minutes ago
11 min read

Onchain Vaults: Connecting tokenized assets with securities financing.


Bringing a Treasury, money market fund or equity onchain creates a digitally transferable asset. $40B of such assets have come onchain since 2022. That's step one.


With trillions more projected to come onchain by 2030, the next step is turning them into useful financing collateral.


This requires investors willing to supply capital, borrowers seeking liquidity, and arrangements that protect lenders when markets deteriorate.


Onchain vaults could help connect tokenized assets with financing demand.


Onchain Vaults - connecting onchain capital, assets and financing

This connects two familiar financial businesses: asset management on the funding side and collateralized financing on the borrowing side.


The Financial Times recently reported that more than $10 billion has flowed into crypto lending vaults, up from approximately $4 billion at the beginning of 2025. Today, that activity remains largely concentrated in crypto-native markets. But as more financial assets and forms of institutional digital money become available onchain, the potential financing opportunity broaden out signficantly.


Yet a functioning lending market in normal conditions is only the starting point. The real test revolves around:


  • Can collateral be legally enforced and converted into cash when prices fall?

  • Can investor withdrawals be managed while loans remain outstanding?

  • Can borrowers receive money they can actually use?


S&P Global Ratings’ introduction of a Vault Risk Assessment framework signals growing demand for independent analysis of these risks. Resolving them will determine whether vaults can develop from crypto-native investment products into infrastructure supporting institutional financing.


This Strategic Edge analysis examines four questions:


  1. How does the connection work today? How do vaults allocate capital, generate returns and distribute risk among investors, curators and lending protocols?

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