A new chapter in finance is taking shape on blockchain networks. Tokenised funds reached $9.0 billion in assets under management in Q1 2026, surging 181.3% year over year as traditional asset managers and crypto-native firms expand into on-chain markets, according to CoinShares and Token Terminal.
The growth underscores a broader shift toward Hybrid Finance, where Wall Street products, blockchain infrastructure, and digital asset markets are beginning to merge into a single financial ecosystem.
Tokenised Funds Reach $9 Billion
According to the report, tokenised funds are among the fastest-growing segments in Hybrid Finance. In Q1, on-chain assets under management reached $9.0 billion, representing a 181.3% increase year over year and a 12.6% rise from Q4 2025.
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Growth has been driven largely by demand for low-risk, yield-generating products backed by short-duration US Treasury instruments.
The market remains concentrated among major financial institutions and crypto-native issuers, including BlackRock, Franklin Templeton, Circle, and Ondo, with nearly 50% of issuance taking place on Ethereum.
Ethereum Remains the Leading Settlement Layer
Stablecoins continue to form the foundation of Hybrid Finance, acting as on-chain equivalents of fiat currencies used for trading, payments, and collateral.
In Q1, the stablecoin market reached $297.6 billion in on-chain market capitalisation, up 37.2% year over year. Market leadership remains concentrated among major issuers including Tether, Circle, Sky, Ethena, and Paxos.
Ethereum remains the dominant settlement network, hosting approximately 60% of all stablecoin supply, while other ecosystems including Tron, Solana, Arbitrum, and Base continue to expand their activity.
Hyperliquid Leads On-Chain Revenue Growth
On-chain businesses are emerging as blockchain-native financial companies that generate revenue directly from trading, lending, and collateral activity.
In Q1, leading on-chain businesses generated $587.9 million in revenue, with activity concentrated among trading platforms and stablecoin-related businesses.
Hyperliquid generated more application revenue than any other lending or trading platform tracked in the report.
The report highlights Hyperliquid’s unique position as both an application and settlement layer, allowing it to capture value from exchange activity and its underlying blockchain infrastructure.
RWA Perpetual Futures Gain Momentum
Perpetual futures remain a major use case for on-chain finance. While broader crypto-native derivatives markets have weakened since late 2025, real-world asset (RWA) perpetual futures have continued to grow.
Trading activity on tradeXYZ, an RWA-focused venue built on Hyperliquid, has increased approximately 20 times since launch, with demand concentrated in commodities such as oil and precious metals, major equity indexes including the S&P 500 and Nasdaq-100, and technology and semiconductor stocks.
Why This Matters
The CoinShares report marks 2026 as the year Hybrid Finance moves from a market narrative to a measurable financial system. Stablecoins, tokenised funds, and revenue-generating on-chain platforms are creating a new bridge between traditional finance and crypto markets.
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