Crypto lending vaults have surpassed $10 billion in deposits, up from roughly $4 billion at the start of 2025, as investors increasingly seek yield from digital assets. The growth has brought
Crypto lending vaults have surpassed $10 billion in deposits, up from roughly $4 billion at the start of 2025, as investors increasingly seek yield from digital assets. The growth has brought more attention to DeFi lending, with curator-managed vaults attracting growing amounts of institutional and professional capital.
Vaults pool assets through smart contracts while curators select lending strategies, determine acceptable collateral and set risk limits. Typical returns range from 3% to 10%, with riskier strategies offering 20% or more, but depositors remain exposed to borrower defaults, illiquid collateral, smart-contract failures and liquidation cascades. Higher yields therefore come with risks that can extend beyond the underlying lending protocol.
The rapid expansion is also drawing closer regulatory scrutiny in the United States and Europe as authorities assess how existing financial rules should apply to onchain lending products. The next major development will be whether regulators impose clearer requirements on vault managers and intermediaries, potentially reshaping how these products are structured and offered as deposits continue growing.
Source: Financial Times.
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