The Convergence of Asset Management: From Wall Street to Onchain

Digital assets are entering traditional financial markets through ETFs, while traditional asset management functions are expanding onchain through vaults. Against this backdrop, we explore the evolution and regulatory challenges of digital asset ETFs, the operational structures, risks, and regulatory considerations of curated vaults, and the future of asset management shaped by the convergence of traditional and onchain finance.

Oct 29, 2026

Researcher

Four Pillars

100y

FnGuide

Seungjin Yim

The Convergence of Asset Management: From Wall Street to Onchain

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The boundaries between traditional finance and onchain finance are blurring, driving a structural transformation in the asset management industry. While ETFs integrate digital assets into traditional financial markets and vaults bring traditional asset management functions onto the blockchain, both reflect a broader convergence in how assets are incorporated, allocated, managed, and subject to risk management.
Digital asset ETFs are evolving beyond simple price-tracking instruments into sophisticated financial products that combine portfolio management with onchain yield generation. As the product landscape expands from spot Bitcoin and Ethereum ETFs to multi-asset ETFs, staking ETFs, and liquid staking token (LST) ETFs, investment diversification and the integration of network rewards are emerging as key competitive differentiators.
The introduction of spot digital asset ETFs in South Korea requires not only a clear legal framework but also the development of robust financial infrastructure to support their operation. Key priorities include the legal recognition of digital assets as eligible underlying assets, reliable benchmark pricing, custody and safekeeping arrangements, creation and redemption mechanisms, and market surveillance systems, alongside a regulatory framework that accommodates future expansion into staking and multi-asset products.
Curated vaults are emerging as a core infrastructure for onchain asset management, separating professional asset allocation and risk management into independent services. In curated vault ecosystems developed around protocols such as Morpho, specialized curators allocate capital by assessing collateral quality, liquidity, and liquidation risks, effectively replicating key functions of traditional asset managers through smart contract-based infrastructure.
The long-term growth of ETFs and onchain vaults will depend on regulatory clarity, standardized risk management frameworks, and broader institutional participation. While smart contract, oracle, liquidity, and curator risks, along with the securities classification of vaults, remain key challenges, the proliferation of stablecoins and tokenized real-world assets (RWAs), coupled with the expansion of traditional financial institutions into onchain markets, is expected to structurally increase demand for professional onchain asset management.

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