A new coalition is forming, focused on crypto vaults, an increasingly popular mechanism for depositing digital assets and earning yield.
On Friday, the Crypto Council for Innovation launched the Vault Coalition, with backing led by Galaxy and Morpho. BitGo, a16z, the Avalanche Policy Coalition, and Sharplink are also part of the coalition.
Crypto vaults are smart contracts that pool together deposited funds that are then generated to create yield. The process then gives each depositor a vault receipt token representing their share. Over the past year, firms have launched vaults, including Kraken and Tesseract.
Despite their growing experimentation, CCI said vaults are subject to regulatory ambiguity.
“We are at an inflection point," said Morpho General Counsel Christopher Robins in the statement. "Institutional participants are prepared to deploy, but they require a clear legal roadmap to move forward. The Vault Coalition exists to transform industry expertise into the foundational standards the market demands."
