Connecting Onchain capital markets with Offchain yield.
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$40M TVL, up from $7M in May. Congrats to the @3f_xyz team. We took it for a spin with $50 on USCC and it did exactly what it said it would. Loving the UI/UX so far!
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Agree with this framework, and we sit on the discretionary side of it. Private credit can't be allocated by rules alone. Someone has to underwrite the originator, size the position and decide when not to lend.
That makes Paul's test the right one for us: what happens if the operator is hacked, disappears or acts in bad faith? In a discretionary vault the code can't answer that, so the structure has to. That's how we're building ours:
1. As a Cayman fund under CIMA, so the depositor's claim sits against a regulated vehicle
2. Assets held with a qualified custodian
3. NAV calculated independently and published to an onchain oracle, so nobody has to take our word for it
KYC at the wallet level and defined redemption terms
The part we're most excited about is where the two types meet. A discretionary vault holding offchain credit can still issue a token that works as collateral inside noncustodial markets, including fixed rate ones on Midnight. That's where a lot of the growth in this category comes from.
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O2O Capital Partners retweeted
Vault Curators & Managers can passively accrue assets and build a meaningful business for this reason
Neobank allocations, foundation treasuries, aggregators, DAT allocators and more will all just funnel into an array of vaults
@O2Ocapital is both asset manager and RWA originator.
Ask not what you can do for O2O, ask what O2O can do for you 馃
Everything in DeFi is turning into a vault, and most users will never know it.
The reason is UX. DeFi is still way too complex for a normal user. Even for power users, you don't want to deploy manually into 15 different Morpho pools. Pack that into a vault that rebalances (or not) on the backend and you get exposure without the manual work.
Now look at the 5% yield toggle in a fintech app. On the front end it's a savings product. On the back end it's a vault deploying into lending pools. The user has no idea. Institutions want the same thing with their own branding on top, white label, without ever touching a public pool.
Same with RWAs. You can tokenize a yield-bearing asset, but until it sits in a lending protocol, has a pool on an AMM and ideally ends up in something like Pendle, it's dead in defi terms. Nobody uses it. Wrapping it in a vault is how it gets utility.
And it gets harder from here. On-chain liquidity is thin outside BTC, ETH and SOL. The strategies that actually make money run off-chain, on exchanges and OTC desks. The vault becomes a mutual fund with a tokenized receipt of the NAV. You cannot verify the strategy by reading the contract anymore.
Anyone can promise 20% on stablecoins. The question is what happens to your balance sheet on a black swan event, and whether your depositors can see it coming.
Nobody cared about this in the early days. Institutions coming from TradFi will care, and they will not deposit without risk frameworks and transparency tooling in place. That is the most underbuilt piece in vaults right now.
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The cost of immediate liquidity in DeFi priced:
- 2bps on Janus Henderson's JTRSY
- 34bps on New York Life's HYB
- 570bps on Apollo's ACRED
Duration and lockups largely drive the spread. Good primer from @Serotonin, and excited to see how the @FissionXYZ team expands assets!
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Great map. Worth pointing out that the liquidity and risk row at the bottom is what lets the rows above it scale. Solve the exit for institutional allocators and the $4.8B starts compounding exponentially against that $2T.
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Huge. Millions of people about to find out they can borrow against BTC without selling it at a fixed rate. Congrats @morpholabs.
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$14B of tokenized money market funds, zero onchain trades.
Tokenizing is truly just a prerequisite.
The value for the holder comes from what gets built around it:
- a way out between redemption windows
- a lending venue that takes the token as collateral
- a channel that puts it in front of allocators
That's the whole focus at O2O.
$14bn+ of tokenized money market funds, 86% of the class, updated prices at least weekly through August and recorded no onchain trades at all. Publishing a price is what makes a secondary market possible, but these products mostly redeem with the issuer rather than trading.
Tokenization serves a different purpose for each asset class. Our RWA report sets out what each one is for.
eu1.hubs.ly/H0ygdHL0
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Good data. A fund token that only redeems with the issuer hasn't gained anything from being a token.
Tokenizing is truly just the prerequisite.
Standing bids so holders can exit between windows, the token accepted as collateral so it can be looped, and Earn programs and neobanks as channels are the work.
That's what we鈥檙e focused on at O2O.
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North of $8M in the first day and $21M by day 13, lending AUSD against real credit from @humafinance, @USDai_Official and @HastraFi.
This is the demand we keep pointing at and are building for. Congrats @Bitwise, @Morpho and @withAUSD.
The Bitwise Premium RWA Vault鈥擯APY鈥攈as passed $20 million in deposits on @Morpho, less than two weeks after launch.
The vault earns yield by lending @withAUSD against RWA collateral from @humafinance, @USDai_Official, and @HastraFi.
Thanks to everyone putting TradFi credit onto DeFi rails with us.
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Congrats on this, T+0 for mWIN and the Fasanara book is a big one. Asset-backed credit has needed real secondary liquidity like this for a long time. Excited to make RWAs actually useful together!
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Onchain portfolio management will expand by necessity as stablecoins make their way to the trillions. This is where your ecosystem is your moat.
Vaults emerged as DeFi鈥檚 preferred vehicle of capital formation, ripping from $3B at the start of 2025 to $18B to date largely on the back of @Morpho with strong additions from @veda_labs , @ConcreteXYZ, @upshift_fi, @mellowprotocol, @lagoon_finance, and @EmberProtocol. The next step-change in vault TVL growth is the evolution of onchain balance sheets and a transition towards holistic portfolio management.
Most RWA vaults today offer single-name leveraged exposure, which is great to deliver a singular product to market enabling other allocators to craft their own portfolios with it. A layer above that, groups like @Bitwise are offering professionally-managed portfolio-style vaults holding various RWAs, which is ultimately where @O2Ocapital sees the majority of onchain asset management moving as vaults grow to $100B these next 2 years and RWAs account for half of that.
The vault landscape will look very much like ETFs. Single-name assets are 1) delivered by issuers, 2) enhanced by DeFi curators, and 3) aggregated by onchain portfolio managers. Step 3 is the de facto distribution layer akin to being included in an index or an ETF (which is everyone's goal!).
The key: RWAs need to be delivered in a DeFi-composable manner to be included in that portfolio manager universe - that's where you see the real differentiation between a simple tokenized asset and a product with an ecosystem around it.
This will be more pertinent than ever as issuers vie to capture the anticipated $1T+ stablecoin flows post-GENIUS Act January 2027. Deeper dive on this coming next week 馃挴
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$400M of their own capital against a $3B target. Sponsors don't usually go that heavy.
Says a lot about where stablecoin balance sheets are headed.
THE BLOCK: Tether and Fasanara Capital have launched a private credit fund backed by $400 million in co-investment from the two firms.
The fund aims to raise up to $3 billion from institutional investors to finance lending to businesses and consumers through fintech platforms.
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$500B to $1.3T, and the onchain infrastructure is finally ready for an asset class that size.
Nice work from @plumenetwork and @NestCredit here. Senior-secured private credit is the piece we鈥檙e bringing at O2O.
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$1.6B onchain and holders up 22.8% in a month. Roughly $1.5M per holder, so these are balance sheets rather than traders.
Real credit finding real allocators onchain. Congrats to the @centrifuge team.
Centrifuge-issued assets have a combined onchain market cap of $1.6 billion, led by JTRSY ($851.5 million) and JAAA ($715.0 million), with most of the value on Ethereum, Avalanche, and Solana
The number of asset holders grew 22.8% over the past 30 days to 1.1K
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