Grayscale’s Head of Research Zach Pandl believes on-chain vaults could follow the mainstream adoption pathway previously taken by stablecoins, tokenized assets, and perpetual futures. The current vault market is worth approximately $7.3 billion, with the top three curators, Steakhouse, Sentora, and Gauntlet, controlling over 70% market share and managing more than 3,000 vaults combined. These products, comparable to collateralized loan obligations (CLOs), could potentially disrupt the $1.5 trillion CLO market according to Grayscale. S&P Global shares this optimistic view but notes that regulatory clarity remains a significant barrier to institutional adoption. In July, the SEC clarified that most vaults would fall under U.S. federal securities law while maintaining a case-by-case review approach based on each vault’s design.
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