Crypto-native asset managers quadruple onchain capital to $4 billion in 2025

The onchain capital managed by crypto-native asset managers has seen a remarkable expansion, growing from $1 billion at the start of 2025 to over $4 billion by June 2025. This substantial increase underscores the growing institutionalization of decentralized finance (DeFi), which is reshaping traditional financial markets and attracting a more sophisticated investor base.

Leading this surge are crypto-native asset managers such as Gauntlet and Steakhouse Financial. These firms have been actively deploying capital into major DeFi protocols, reflecting their increasing role in institutional finance. Notable actions include the deployment of capital into platforms like Morpho Protocol, which has $2 billion in locked assets. This shift highlights the evolving landscape of digital asset management, with a greater emphasis on risk-managed strategies.

The market's enhanced stability, with institutional capital flowing into DeFi, is evident in the increased utilization of assets like ETH and USDC. This trend indicates a growing confidence in onchain financial strategies and signals regulatory comfort, moving away from the perception of DeFi as shadow finance. Institutional investors are now integrating traditional finance with blockchain's transparency, creating a more robust and trustworthy financial ecosystem.

Unlike the 2020 DeFi boom, which was largely driven by retail investors, the current growth cycle is characterized by institutional rigor and risk-adjusted strategies. This shift marks a pivotal change towards long-term sustainability in the DeFi space. Experts suggest that as DeFi infrastructures mature, there will be continued interest from institutions seeking innovative financial layers. Historical data supports a trend towards more controlled environments via permissioned DeFi pools, further solidifying the role of institutional capital in the DeFi ecosystem.

According to a joint report by Artemis and Vaults, "As DeFi infrastructure matures, institutional sentiment is moving towards seeing DeFi as a complementary, configurable financial layer not merely a disruptive, ungoverned space." This perspective aligns with the current trend of institutional investors viewing DeFi as a viable and integral part of the financial landscape, rather than a disruptive force.