Onchain Vaults Could Become Crypto’s Next Wall Street Breakthrough – Grayscale

Crypto’s next push into traditional finance may not come from another stablecoin or tokenized stock. According to Grayscale, onchain vaults could be the industry’s next major breakthrough, bringing blockchain-based asset management closer to the mainstream financial system.

The firm’s latest research argues that while stablecoins, tokenized assets, and perpetual futures have already started crossing into traditional markets, onchain vaults may be next in line as institutional credit markets mature.

Vaults Mirror Traditional CLO Structure

Grayscale compares onchain vaults to collateralized loan obligations (CLOs), one of the largest credit products in traditional finance.

Like CLOs, vaults pool investor capital into professionally managed portfolios designed to maximize risk-adjusted returns while distributing cash flows generated by underlying assets. The major distinction, however, is that vaults operate entirely on blockchain networks using smart contracts instead of trustees and custodians.

Because transactions settle natively on networks such as Ethereum, Base, and Solana, grayscale Investment grayscale Investment Grayscale, officially known as Grayscale Investments, LLC, and its related entities, is a major name in digital asset investing. The platform focuses on crypto investment products that follow strict regulatory standards, making it easier for individuals, financial experts, and institutions to enter the crypto market with confidence. It is also regarded as the world's largest cryptocurrency-focused investment platform in terms of assets under management (AUM). Key features: Grayscale allows investors to safely access cryptocurrency holdings in a secure environment. Its regulated, easy-to-use investment products open doors to digital asset opportunities. Offers ETFs that make investing in major cryptocurrencies simple for both individuals and institutions. Offers single-asset solutions, such as Bitcoin or Ethereum, for targeted cryptocurrency investments. Shares research insights to assist investors in understanding trends and making more informed decisions. Investment platform believes vaults can provide greater transparency, operational efficiency, and potentially improved liquidity.

Still Tiny Beside Traditional Finance

Despite growing attention, the sector remains relatively small. According to Grayscale, around 3,008 vaults managed by 57 curators collectively hold approximately $7.26 billion in total value locked (TVL) as of late July 2026. 

Roughly 79% of these vaults focus on stablecoins. That figure remains well below the roughly $12.30 billion invested in September 2025.

By comparison, the traditional CLO market exceeds $1.5 trillion, spread across thousands of investment vehicles managed by more than 250 firms.

Curators Take Center Stage

As the market evolves, curator competition is becoming increasingly important. According to Blockworks onchain data, Steakhouse Financial, Gauntlet, and Sentora currently rank among the leading vault curators. 

Infrastructure providers also continue expanding, with Morpho, Veda, and Kamino holding the largest deposit bases.

Grayscale notes that regulatory uncertainty remains one of the biggest hurdles, particularly around U.S. securities rules when investors depend on curators for active portfolio management. 

Still, the firm argues that onchain vaults are steadily emerging as a foundational investment vehicle for digital asset credit markets, much like CLOs have become in traditional finance.

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