Report: DeFi Vault Market Concentration Notable, Top 5 Managers Control 69% of Funds

Vaults.fyi released the "2026 DeFi Custody Market Status" report, covering 856 vaults, 131 custodians, and 18 protocols, with total value locked of approximately $11.29 billion. Over the past year, DeFi supply-side TVL declined 41.8%, while custody vault TVL grew 39%, with market share rising from 5.24% to 12.51%. The top 5 custodians manage 69% of funds, and the top 10 account for 79.1%. The top-tier landscape has shifted dramatically—Sentora and Concrete, which were not on the list a year ago, now rank second and fourth respectively, while Usual fell from fourth to thirty-fourth. Morpho leads protocols with 46.2% of custody TVL, with the remaining 53.8% spread across 17 other protocols. Bitcoin collateral accounts for 54.1% of Morpho's top 25 stablecoin vaults (approximately $3.71 billion). In terms of address concentration, on a TVL-weighted basis, a single address holds on average 47% of vault share, with the top 10 addresses collectively controlling 74%. Approximately 33% of custody funds require multi-step redemption processes, with a median 7-day annualized yield of 4.82%, 98 basis points higher than instantly redeemable vaults. The report also notes that traditional financial institutions such as Société Générale, Apollo, and JPMorgan have begun deploying custody vault strategies.