Bloomberg: On-chain vault market could double by year-end, says Bitwise

The market for on-chain investment vaults could double by the end of this year, driven by rising demand for stablecoins, Bloomberg reported, citing a study from Bitwise. The Total Value Locked (TVL) in these vaults has already surpassed $6 billion. The report highlights that vaults are distinguished from centralized platforms by their non-custodial structure, which allows users to deposit funds into lending protocols or trading pools via smart contracts without directly surrendering custody of their assets. However, risks remain, as illustrated by last year's losses on the DeFi platform Stream Finance. While the passage of the U.S. stablecoin regulation bill, known as GENIUS, is expected to encourage more asset managers to utilize vaults, the report cautions that the risks behind the potential yields should not be overlooked.