$USDC Crypto asset managers have significantly grown their holdings on blockchains since the start of the year, while institutions are increasingly using decentralized finance as a back-end to their services, according to a new report.

“A new class of ‘crypto-native’ asset managers is emerging,” the analytics platform Artemis and DeFi yield platform Vaults said in a report on Wednesday.

“Since January 2025, this sector has grown its onchain capital base from roughly $1 billion to over $4 billion.”

The report said asset managers are “quietly deploying capital across a diverse range of opportunities,” giving the example of major firms having locked in nearly $2 billion in the decentralized lending and borrowing platform Morpho Protocol.