Hybrid Finance Surges as Tokenized Funds Reach $9 Billion

Tokenized funds have reached $9 billion in assets under management, according to a report from CoinShares and Token Terminal. This represents an 181% year-over-year increase, with nearly half of all tokenized fund issuance taking place on the Ethereum blockchain.

The growth in tokenized funds is part of a broader trend towards Hybrid Finance, where traditional Wall Street products are merging with blockchain infrastructure and digital asset markets. This shift has been driven by demand for low-risk investment products backed by short-duration US Treasury instruments.

Ethereum remains the dominant settlement network, hosting approximately 60% of all stablecoin supply, while other ecosystems such as Tron, Solana, Arbitrum, and Base continue to expand their activity. On-chain businesses are also emerging as blockchain-native financial companies that generate revenue directly from trading, lending, and collateral activity.

Tokenized funds, along with stablecoins and on-chain platforms, are creating a new bridge between traditional finance and crypto markets. As the market continues to grow, it is likely that we will see even more innovation and adoption in the space.