Tracked Crypto Lending Vaults Top $10 Billion as Experts Flag Risks

Tracked crypto lending vaults surpassed $10 billion in assets under management, while separate deposit estimates and expert warnings highlight how collateral reuse and withdrawal promises can link risks across platforms.

A tracked-vault AUM measure that removes recursive deposits rose above $10 billion, compared with roughly $4 billion early in 2025. S&P Global Ratings separately estimated vault deposits at about $10 billion in September 2026, compared with $1.5 billion in September 2024. The figures use different metrics and comparison periods, so they do not form one continuous growth series.

Vaults pool digital-asset deposits and deploy them under a defined strategy. Smart contracts can automate the strategy, while a human manager may make allocation decisions. Depositors receive share tokens representing a proportional claim on a vault’s assets and returns.

S&P launched its Vault Risk Assessment on Oct. 4. The framework for assessing on-chain lending vaults considers portfolio credit quality, liquidity mismatch, curator, blockchain, protocol, and vault security and governance risks. The assessment is not a credit rating and does not evaluate yield.

Abdul Rafay Gadit, co-founder and chief commercial officer at Zigfinance, warned that vault shares used as collateral on another platform can add leverage against the same underlying assets and connect exposures across markets. “A vault share can be borrowed against elsewhere,” Gadit said. He also warned that fast withdrawal terms can be difficult to meet when vaults hold private loans or locked positions.

August Widmer, partner in investments at Echo Base, advocated capital buffers modeled on traditional finance and proposed a Basel III-style framework for digital assets. He said that without protections, “the consumer is left exposed.” The framework he proposed is not an existing requirement for vaults.

SEC Commissioner Hester M. Peirce said in a July 22 statement that a vault’s treatment under federal securities laws depends on its design and activities. Her statement did not determine the status of any particular vault.