Crypto-Based Asset Management Firm Sees Fourfold Increase in On-Chain Holdings Since January

Decentralized finance (DeFi) has taken root as the “invisible backend” of fintech companies, and cryptocurrency management companies are rapidly expanding their holdings of assets on the blockchain.
In their latest report released on the 18th (local time), Artemis and Vaults said, "Crypto asset managers' on-chain assets will grow by approximately $1 billion to $4 billion by January 2025.
"A new breed of 'crypto-native' asset managers are emerging, quietly deploying capital to take advantage of various opportunities," the report said.
For example, several major asset managers have approximately $2 billion deposited with Morpho Protocol, a DeFi lending and borrowing platform, alone.
This trend has taken off since the Trump administration promoted deregulation of crypto assets in 2025. The reduction in regulatory uncertainty has
As institutional investors gain confidence in the use of crypto and DeFi, blockchain-based asset management is no longer experimental but is recognized as a strategic asset allocation tool.
The report emphasized that "As DeFi infrastructure matures, institutions are shifting their perceptions from merely being a disruptive technology to a flexibly composable financial layer."
Cloud companies, crypto wallets, and exchanges are integrating DeFi features into their user experience to improve profitability and customer retention. By abstracting away the complexity of DeFi,
Users can conveniently earn interest and borrow assets without even realizing the smart contract technology behind it.
Such a system is sometimes called a "DeFi Mullet." On the front, it looks like a traditional fintech service, but behind the scenes,
These are DeFi protocols in action, such as Coinbase’s Morpho-based lending service and PayPal’s stablecoin.
The report specifically mentioned three main ways that institutions are using DeFi: stablecoin revenue, cryptocurrency revenue, and cryptocurrency-backed loans.
User experience (UX) is also emerging as an increasingly important factor in DeFi adoption. The report cited “trustworthiness, predictability, and simplicity of the user interface.”
"Features such as transactional flexibility and no gas fees will reduce user churn and encourage long-term usage," he said.