Something interesting is happening in what is normally a dull corner of corporate finance. According to David Pakman, a managing partner at the venture firm CoinFund, finance executives are looking to park their companies’ excess cash in DeFi vaults rather than money market funds or other familiar short-term investments. If this comes to pass, it would pull billions of dollars of new assets into crypto.
The term DeFi vaults, if you’re unfamiliar, describes protocols that allow investors to gain yield through decentralized smart contracts—think of platforms like Aave, Yearn Finance, or Morpho, which act as automated asset managers. They are not new, but Pakman says they are drawing new attention from the corporate world amid its broader push into stablecoins.
