Tokenized funds hit $34.3B all-time high as SkyEcosystem's RWA vaults top $2B. Institutional demand for onchain funds accelerates, but concentration and smart contract risks remain.
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Tokenized funds hit a record high. The sector's market cap climbed to about $34.3 billion, according to Token Terminal data. DeFi protocols and institutional asset managers are pushing more traditional financial products onto blockchain rails. The growth is led by yield-bearing stablecoins and tokenized Treasuries, along with money market products and structured credit.
SkyEcosystem, the protocol behind the MKR token, formerly known as MakerDAO, has become one of the largest players. Its sUSDS product leads Token Terminal's tokenized funds dashboard. Its broader RWA vaults hold more than $2 billion across tokenized Treasuries and structured credit.
Real-world asset strategies now account for more than 60% of Sky's protocol revenue, according to Token Terminal. That compares with a period when the protocol relied mainly on crypto-native collateral.
Sky's Agent Network is central to that pivot. The system lets allocators deploy USDS into yield-generating strategies through structured vaults, giving different managers a shared infrastructure layer to compete for capital.
Ethereum remains the main settlement layer for institutional tokenization. BlackRock's BUIDL fund launched on Ethereum. Franklin Templeton has expanded onchain products across Ethereum-compatible rails.
The broader RWA market is larger than tokenized funds alone. RWA.xyz shows more than $27 billion in distributed asset value. Other market estimates place tokenized RWAs above $30 billion depending on whether stablecoins, commodities, private credit, and fund products are included.
Tokenization now spans funds, credit products, yield-bearing stablecoins, commodities, and institutional settlement infrastructure.
The market is concentrated. A small group of protocols and asset managers control much of the current value, according to industry data. That makes smart contract risk and issuer risk more important as the sector grows.
The $34 billion milestone means tokenized funds now hold a larger share of crypto market value. The category is still small beside the global fund industry. It has moved far beyond the proof of concept stage.
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