DeFi Vaults Are Headed For Half A Trillion In TVL. What’s Behind The Surge?
A new report says the TVL in DeFi vaults has grown 28x over the past 12 months, jumping from under $150M in June 2024 to more than $4.4B today – outpacing the crypto market’s bull-run expansion.
Around a fifth (19.8%) of vaults – pre-packaged and professionally managed investment approaches within decentralized finance platforms – are dominated by tokenized real-world assets (RWAs) like treasuries and private credit funds. But single-asset vaults are also on the up.
The report from staking platform Kiln says some USDC supply vaults on the Morpho decentralized lending protocol hold “several hundred million dollars” – on par with a mid-sized money-market fund.
TradFi participation is growing. Apollo Global Management, a US investment firm with more than $750 million in assets under management, launched its Apollo Diversified Credit Securitize Fund (ACRED) in May.
Now live on Solana, the fund is a tokenized version of Apollo’s off-chain Diversified Credit Fund (ADCF). Instead of investing directly in the traditional fund, investors can buy tokens that represent ownership.
The advantage of investing in a traditional fund via tokens is speed and simplicity. Tokenization enables daily net asset value redemptions to happen faster – with less processing and reduced paperwork.
Kiln says ACRED …
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