DeFi Vault Market Shows High Concentration; Top 5 Custodians Control 69% of Funds

ChainCatcher report: Vaults.fyi has released the report "State of DeFi Custody Markets 2026," covering 856 vaults, 131 custodians, and 18 protocols, with a total locked value of approximately $11.29 billion. Over the past year, DeFi supply-side TVL declined by 41.8%, while custody vault TVL increased by 39%, with market share rising from 5.24% to 12.51%. The top five custodians manage 69% of funds, and the top ten account for 79.1%. The leadership landscape has shifted dramatically: Sentora and Concrete did not appear in the rankings a year ago but now rank second and fourth, respectively, while Usual dropped from fourth to thirty-fourth. Morpho leads protocols with 46.2% of custody TVL, with the remaining 53.8% distributed across the other 17 protocols. Bitcoin collateral accounts for 54.1% of Morpho’s top 25 stablecoin vaults (approximately $3.71 billion). In terms of address concentration, weighted by TVL, a single address holds an average of 47% of vault shares, with the top ten addresses controlling 74% combined. Approximately 33% of custody funds require a multi-step redemption process, with a median 7-day annualized yield of 4.82%, 98 basis points higher than instant redemption vaults. The report also notes that traditional financial institutions including Société Générale, Apollo, and JPMorgan have begun deploying custody vault strategies.