In a remarkable year for the cryptocurrency industry, onchain asset management is experiencing an unprecedented surge, according to a new report from the crypto trading firm Keyrock. The report reveals that assets under management (AUM) in the onchain asset space have soared by an impressive 118% in 2025, reaching an astounding $35 billion. This growth has been fueled by the expansion across automated yield vaults, discretionary strategies, structured products, and credit. Keyrock anticipates that the sector could nearly double by 2026, with AUM potentially hitting $64 billion, or even $85 billion if the current growth trajectory persists.
Discretionary Strategies: The Star Performer
Discretionary strategies have emerged as the standout performer this year, with a staggering 738% increase year-to-date. As onchain investing continues to evolve into a viable alternative to traditional finance, these strategies are capturing the attention of investors seeking both liquidity and transparency. Keyrock’s report underscores the potential of discretionary strategies to deliver hedge fund-like results, providing investors with a compelling blend of performance and openness that traditional finance often lacks.
The Dominance of Yield Vaults
While discretionary strategies are grabbing headlines, yield vaults remain the primary entry point for allocators, commanding a hefty $18 billion in deposits. These vaults have become a popular choice for investors seeking competitive returns with less manual intervention. According to Keyrock, automated yield vaults have outperformed their traditional finance counterparts by approximately 186 basis points after fees, reinforcing their appeal in the investment landscape.
Protocol Leaders and Risks
The report also highlights the dominance of three key protocols—Morpho, Pendle, and Maple—which together control 31% of the industry’s AUM. This concentration underscores both the leadership of these protocols in scaling the onchain asset management sector and the inherent concentration risk that comes with such dominance. Investors are advised to be mindful of these risks as they navigate the rapidly evolving landscape.
The Role of Whales and Dolphins
It’s not just the protocols that are shaping the future of onchain asset management; the investors themselves play a crucial role. While smaller wallets dominate in number, it’s the whales and dolphins—investors with substantial capital—that provide the overwhelming majority of liquidity. Keyrock’s report notes that these larger investors contribute between 70% and 99% of capital across various strategies, illustrating their significant influence on the market.
Performance and Competition
As the onchain asset management sector matures, its performance is becoming increasingly competitive with traditional markets. However, Keyrock’s report points out that net returns are no longer uniformly higher than those in traditional finance. While automated yield vaults continue to outperform, structured products and onchain credit have slightly lagged once costs are considered. This nuanced performance landscape suggests an increasing sophistication in the sector, where investors must weigh potential returns against associated risks and costs.
Keyrock’s Strategic Expansion
Amidst this backdrop of growth and evolution, Keyrock has made strategic moves to cement its position in the asset management space. The Brussels-based firm recently expanded its operations by acquiring Turing Capital, a Luxembourg-registered fund manager. This acquisition marks a significant step in Keyrock’s asset and wealth management push, allowing the firm to leverage Turing Capital’s expertise and broaden its service offerings to clients.
A Look Ahead
As we look to the future, the potential for continued growth in the onchain asset management sector appears robust. Keyrock’s optimistic projections suggest that AUM could nearly double by next year, driven by sustained interest and innovation in the space. However, investors must remain vigilant, balancing the opportunities presented by discretionary strategies and yield vaults with the risks of protocol concentration and competitive performance metrics.
Ultimately, the rise of onchain asset management is reshaping the investment landscape, offering both challenges and opportunities for investors and firms alike. As this dynamic sector continues to evolve, it will be fascinating to see how it integrates with, and perhaps even disrupts, the traditional financial ecosystem.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
