Crypto-Native Asset Managers Quadruple Onchain Capital in 2025
- Crypto-native asset managers increase onchain capital from $1 billion to $4 billion.
- Institutions increasingly integrate DeFi into financial products.
- Stablecoin yields become competitive with traditional finance returns.
The onchain capital managed by crypto-native asset managers expanded significantly, reaching over $4 billion as of June 2025 from $1 billion at the beginning of the year.
This growth highlights the institutionalization of DeFi, reshaping financial markets and attracting sophisticated investors.
Gauntlet and Steakhouse Drive Onchain Capital Surge
The surge in onchain capital is led by crypto-native asset managers such as Gauntlet and Steakhouse Financial, deploying capital into major DeFi protocols. The growth reflects their increased role in institutional finance.
Significant actions include capital deployment into platforms like Morpho Protocol with $2 billion in locked assets. This shift illustrates the evolving landscape of digital asset management, emphasizing risk-managed strategies.
Institutional Confidence Boosts DeFi Stability
The market shows enhanced stability with institutional capital pouring into DeFi. ETH, USDC, and other assets see increased utilization, indicating a growing confidence in onchain financial strategies.
The increased deployment in DeFi signals regulatory comfort and a move away from seeing DeFi as shadow finance. Institutional investors are combining traditional finance with blockchain’s transparency.
2025: Institutional Growth Mirrors New DeFi Strategies
Unlike the 2020 DeFi boom driven by retail, the current growth cycle sees institutional rigor and risk-adjusted strategies. This shift marks a pivotal change towards long-term sustainability.
Experts suggest that as DeFi infrastructures mature, we will witness continued interest from institutions seeking innovative financial layers. Historical data supports a trend towards more controlled environments via permissioned DeFi pools.
“As DeFi infrastructure matures, institutional sentiment is moving towards seeing DeFi as a complementary, configurable financial layer not merely a disruptive, ungoverned space.” — Artemis and Vaults, Joint Report Authors
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