Crypto Asset Managers have significantly increased their holdings in blockchain since the beginning of the year, and institutions are increasingly using decentralized finance as the backend of their services, a new report says.
“New ‘crypto-local’ asset managers are emerging,” said the analytics platform Artemis and Defi production platform library. Report Wednesday.
“Since January 2025, the industry has increased its OnChain Capital Base from approximately $1 billion to $4 billion.”
Report Asset Manager “Silently deploying capital in a variety of opportunities” gives examples of the major companies locking in nearly $2 billion loan and borrow platform morpho protocol.
Because the Trump administration has moved to Relax the departmentconfidence in institutions they can use encryption and FEFI protocols without facing regulatory scrutiny.
“Invisible” backend definition of an institution
Artemis and Vaults said that institutional perceptions of cryptocurrencies have changed with the U.S. regulation shift, and as the Defi protocol develops, institutional perspectives will also develop their products.
“As the Defi infrastructure matures, the sentiment in institutions is heading towards seeing Defi as a complementary, configurable financial layer is not only a destructive, powerless space,” the pair wrote.
They added the “invisible” backend infrastructure used by fintech companies, crypto wallets and exchanges.
“By abstracting the complexity of Defi, these platforms can incorporate it into their user experience, enhance retention, open up new monetization avenues and increase capital efficiency.”
Stablecoins, borrowing, output: three major
The report says that the three main ways institutions use Defi are to provide Stablecoin production, cryptocurrency yields and crypto borrowing, which are “abstract elimination of complexity.”
It noted that centralized platforms are providing Stable yield In consumer-facing applications, be aware of the crypto exchange Coinbase Provide output On USDC (USDC) deposits, although payment giant PayPal did the same thing with its PayPal USD (Pyusd) stablecoin.
Related: Bitcoin 2025 builders predict that Defi will be out of place
In terms of crypto lending, the report says that these types of products are “defi mullet” (fintech front, defi back), such as using Coinbase’s Crypto loan services Use the morpho protocol.
User experience is a factor in Defi
Artemis and Vaults report said the user experience of the Defi protocol is an increasing factor that will drive its adoption and “continuous capital’ stickiness.”
“User weighing factors such as reliability, predictability, and overall user experience (UX),” the report says. “Platforms that simplify interaction, reduce friction (such as airless transactions) and build trust through reliability and transparency tend to retain users better over time.
