Onchain Dollar-Yield Buyers Are Crypto-Native, Not Banks, Arrakis Finds

A July 2026 forensic study by Arrakis Finance analyzed $91.3 billion in gross acquisitions across ten tokenized dollar-yield products, revealing that the market is currently dominated by crypto-native capital rather than traditional institutional investors. The research, which tracked 71,697 buyers, found that protocol and DAO treasuries account for two-thirds of the $12.4 billion in attributed volume, with zero participation from pension funds, banks, or traditional asset managers. Capital is highly concentrated, as 4% of wallets control 93% of the total value, indicating that product success relies on catering to a small group of large, on-chain allocators. Furthermore, over 93% of volume originates from primary subscriptions rather than secondary market activity, which limits the composability and liquidity of these assets. Geographically, 82% of activity occurs during EMEA and APAC hours, suggesting a strong preference among non-US investors for on-chain access to dollar-denominated credit. USDC remains the dominant settlement rail, capturing 80% of the total notional value. These findings suggest that issuers must prioritize operational features like transparent reporting and primary subscription mechanics over retail-focused marketing to align with the current, specialized buyer base.