Grayscale Research published a report on July 29 arguing that onchain vaults, a relatively quiet corner of DeFi, could eventually compete with the collateralized loan obligation market in traditional finance. Approximately $7 billion sits across more than 3,000 vaults managed by 57 curators, compared to a CLO market worth roughly $1.5 trillion in the US and EU combined. Blockchain infrastructure offers structural advantages in terms of transparency and liquidity, with every position and yield verifiable in real time on-chain. Stablecoins dominate the vault landscape, representing 79% of deposited assets. The report acknowledges that uncertain US securities regulations pose real challenges, particularly whether a vault managed by a professional curator constitutes an investment contract under existing securities law.
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