On-Chain Vaults Poised to Disrupt $1.5T CLO Market

Grayscale's Head of Research Zach Pandl predicts that on-chain vaults could disrupt the $1.5 trillion Collateralized Loan Obligations (CLO) market.

Vaults are a structure for on-chain asset management, where smart contracts and curators like Steakhouse or Gauntlet replace traditional asset managers and custodians.

The current vault market is worth around $7.3 billion, dominated by the top three curators - Steakhouse, Sentora, and Gauntlet - who control over 70% of the market share.

Pandl believes that vaults could easily grow to disrupt the CLO market, citing the recent growth of stablecoins, tokenized assets, and perpetual futures as precedents.