Crypto Vault Deposits Top $10B as Regulators Take Notice

TLDR Crypto vault deposits have surpassed $10 billion, rising from approximately $4 billion at the beginning of 2025. Lending vaults generally offer annual yields of 3% to 10%, while riskier strategies advertise returns above 20%. Curators select lending strategies and set risk limits, exposing depositors to potential borrower defaults and collateral losses. Two Prime launched a Bitcoin lending vault on Pareto, targeting annual returns of 1.5% to 2%. US and European regulators are examining whether existing financial rules should apply to crypto lending vaults.

Source: CoinCentral