In a striking display of growth and innovation, Keyrock, a prominent crypto trading firm, has revealed that the onchain asset management sector is experiencing a breakthrough year. According to their latest report, assets under management (AUM) have skyrocketed by 118% in 2025, reaching an impressive $35 billion. This surge is largely attributed to advancements in automated yield vaults, discretionary strategies, structured products, and onchain credit.
Keyrock’s projections for the near future are nothing short of optimistic, anticipating that the sector could nearly double again by 2026. In their base case scenario, AUM could hit $64 billion, with a more ambitious estimate reaching as high as $85 billion if the current growth trend persists. The report highlights discretionary strategies as a major contributor to this growth, with an astonishing increase of 738% year-to-date, marking onchain investing as a credible alternative to conventional financial avenues.
Interestingly, Keyrock identified that three leading protocols—Morpho, Pendle, and Maple—now account for 31% of the industry’s AUM. This statistic points to both the scaling leadership of these platforms and potential concentration risks within the market. Yield vaults have solidified their position as the primary focus for allocators, raking in $18 billion in deposits, while the dynamics of liquidity reveal that larger investors, often referred to as whales and dolphins, contribute a significant 70% to 99% of capital across various strategies.
As performance metrics evolve, the report notes that net returns from onchain investments have now matured to a level competitive with traditional market offerings. Automated yield vaults have notably outperformed their traditional finance peers by approximately 186 basis points after fees, while other segments like structured products and onchain credit have shown slightly less favorable outcomes when factoring in costs. Additionally, discretionary strategies are delivering results comparable to hedge funds, benefitting from the inherent liquidity and transparency of the blockchain environment.
In a strategic move to broaden its presence in the financial landscape, Keyrock has also recently expanded its operations into asset and wealth management through the acquisition of Turing Capital, a Luxembourg-based fund manager. This step underscores Keyrock’s commitment to being at the forefront of the rapidly evolving cryptocurrency industry.
Key Insights on Onchain Asset Management Breakthrough
The following points summarize the essential findings from Keyrock’s report on the current and future state of onchain asset management:
- Significant Growth in AUM:
- Assets under management (AUM) surged 118% in 2025, reaching $35 billion.
- Projected to nearly double again by 2026, potentially reaching $64 billion or $85 billion depending on growth momentum.
- Discretionary Strategies Outperforming:
- Discretionary strategies saw a remarkable increase of 738% year-to-date, indicating a strong evolution in onchain investing.
- Positioned as a credible alternative to traditional finance.
- Protocol Concentration:
- Three major protocols—Morpho, Pendle, and Maple—control 31% of the industry’s AUM, creating both scaling leadership and concentration risk.
- Yield Vaults as Entry Points:
- Yield vaults lead with $18 billion in deposits, serving as the primary entry for allocators.
- Investor Landscape:
- While smaller wallets are numerous, larger investors (whales and dolphins) contribute 70%–99% of capital across strategies.
- Matured Performance:
- Net returns are now competitive with traditional markets, with automated yield vaults outperforming traditional finance peers by roughly 186 basis points after fees.
- Discretionary strategies offer hedge fund-like results with enhanced liquidity and transparency.
- Expansion into Wealth Management:
- Keyrock has expanded its operations into asset and wealth management by acquiring Turing Capital, a Luxembourg-registered fund manager.
Keyrock’s Breakout Year in Onchain Asset Management: An Insightful Comparison
The recent announcement from Keyrock regarding the remarkable growth in onchain asset management has set a new precedent in the crypto space. This trajectory, highlighted by an impressive 118% surge in assets under management, positions Keyrock as a formidable player in a burgeoning industry. Their report showcases not only a phenomenal rise but also the emergence of onchain investing as a serious competitor to traditional finance.
Competitive Advantages: Keyrock’s growth figures are underpinned by its pioneering work in discretionary strategies, which surged by an astonishing 738% in 2025. This rapid evolution indicates a broader acceptance of decentralized finance practices among traditional investors, presenting a vital edge in attracting capital. Furthermore, the high performance of automated yield vaults—outpacing traditional finance counterparts by 186 basis points after fees—further solidifies Keyrock’s reputation for delivering notable returns.
Additionally, the consolidation of AUM in protocols like Morpho, Pendle, and Maple, which collectively manage 31% of the sector’s wealth, showcases their competitive dominance, positioning Keyrock well within a highly scalable niche that boasts both liquidity and transparency. This concentration can serve as a double-edged sword, as it may invite scrutiny regarding system vulnerabilities and protocol risks.
Disadvantages: On the flip side, the mammoth growth comes with challenges, particularly concerning systemic risks inherent in high protocol concentration. If the leading protocols were to falter, it could send shockwaves through the entire sector, affecting all custodians and investors. The maturity of performance, while competitive, signals that returns may no longer be consistently superior to traditional markets, necessitating a recalibration of investor expectations.
The trend towards onchain asset management, particularly buoyed by whales and dolphins providing the bulk of liquidity, may create barriers for smaller investors or newcomers who find themselves disadvantaged amid such dynamically shifting landscapes. Thus, while seasoned players may thrive, retail investors risk facing liquidity constraints or suboptimal returns if they are unable to access the premium offerings that dominate the market.
As the industry propels towards an estimated $64 billion by 2026, Keyrock stands poised to lead; however, the question remains—will it continue benefiting from its position or face challenges from emerging competitors? The balance between growth potential and risk remains critical for stakeholders navigating this newfound profitability in onchain asset management.
