DeFi Treasury Market Concentration Report Reveals Top Custodians Control 69% of Funds

A recent report by Vaults.fyi titled "2026 DeFi Custody Market Status" highlights significant concentration within the decentralized finance (DeFi) treasury market. The report analyzed 856 vaults, 131 custodians, and 18 protocols, revealing a total locked value of approximately $11.29 billion. Over the past year, the total value locked (TVL) in the DeFi sector decreased by 41.8%, while custody vaults experienced a growth of 39%, increasing their market share from 5.24% to 12.51%.

The report indicates that the top five custodians now manage 69% of the total funds, with the top ten custodians accounting for 79.1%. Notably, the rankings have shifted significantly; Sentora and Concrete have emerged as the second and fourth largest custodians, respectively, while Usual has dropped from fourth to thirty-fourth place. Morpho leads among protocols with a custody TVL of 46.2%, with the remaining 53.8% distributed among the other 17 protocols.

In terms of asset concentration, a single address holds an average of 47% of vault shares, and the top ten addresses collectively control 74% of the total vault shares. Approximately 33% of custody funds require a multi-step redemption process, with a median annualized yield of 4.82%, which is 98 basis points higher than that of instant redemption vaults. The report also notes that traditional financial institutions, including Société Générale, Apollo, and JPMorgan, have begun implementing custody vault strategies.

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Source: KLEA News