Summary Points
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Surge in DeFi Capital: Crypto-native asset managers have increased on-chain capital from $1 billion to over $4 billion since January 2025, with leading firms like Gauntlet, Steakhouse Financial, and Re7 at the forefront.
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Evolution and Risk Management: These firms are not only diversifying capital deployment but also enhancing DeFi through improved risk management and allocation strategies, particularly in the stablecoin sector.
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Institutional Shift in Perspective: DeFi is evolving from an unregulated frontier to a programmable financial layer, with institutional participation increasing via permissioned markets that ensure compliance with KYC and AML.
- Embedded DeFi Infrastructure: Fintech platforms like Coinbase and PayPal are using DeFi as backend infrastructure for stablecoin yields and crypto loans, effectively integrating DeFi services into familiar centralized applications.
Crypto-Native Asset Managers Achieve Remarkable Growth
Crypto-native asset managers are making significant strides in decentralized finance (DeFi). Firms like Re7, Gauntlet, and Steakhouse Financial are at the forefront. Since January 2025, the capital they manage has skyrocketed from $1 billion to more than $4 billion.
According to a recent report by Artemis and Vaults, these managers are diversifying investments while enhancing DeFi practices. They focus on risk management and smart allocation strategies, particularly related to stablecoins. Currently, the Morpho Protocol alone hosts nearly $2 billion of professionally managed assets, illustrating growing institutional interest.
The competition among these firms is fierce. Gauntlet dominates with a 31% market share, followed closely by Steakhouse Financial at 27%. Re7 holds 23%, while MEV Capital accounts for 15.4%. These numbers highlight a rapidly evolving landscape in asset management.
Furthermore, institutional attitudes toward DeFi are changing. Once viewed as an unregulated border, DeFi is transforming into a programmable financial layer. New permissioned markets on platforms like Euler, Morpho, and Aave are setting the stage for compliant interactions.
Institutions now see DeFi as backend infrastructure rather than a threat. This shift comes as U.S. regulations evolve and DeFi platforms mature. Fintech companies, crypto wallets, and exchanges are integrating DeFi capabilities while simplifying user experiences. They utilize stablecoin yields and crypto loans through familiar interfaces.
For example, platforms like Coinbase provide stablecoin yields via USDC. They also offer crypto-backed loans from DeFi protocols like Morpho. This reflects the concept dubbed the "DeFi mullet": a user-friendly fintech interface powered by a complex DeFi backend.
As these trends unfold, the growth of crypto-native asset managers signals a promising future for decentralized finance. Institutions are increasingly ready to embrace both the opportunities and challenges that this evolving landscape presents.
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This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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