Vanguard hires digital assets chief, reversing years of crypto resistance
In brief
- Vanguard hires head of digital assets to lead tokenization, stablecoins, and blockchain infrastructure strategy
- Shift reverses asset manager's prior crypto skepticism and August 2024 refusal to launch crypto ETFs
- Competitors BlackRock, Franklin Templeton, and JPMorgan have already deployed billions in tokenized assets
A marked reversal
Just months ago, Vanguard seemed unmoved by the digital asset boom. In August 2024, CEO Salim Ramji said the company would not launch crypto exchange-traded funds, arguing Vanguard would not "copy competitors" despite rapid adoption of spot Bitcoin ETFs. The firm had previously blocked customers from purchasing spot Bitcoin and Ether ETFs through its brokerage platform.
Now the company is doubling down on digital assets. The new executive will be responsible for determining how Vanguard participates in digital assets, including evaluating client-facing products, tokenization, stablecoins, custody models, blockchain-based settlement and digital asset operating infrastructure. The role will also represent Vanguard in discussions with regulators, clients and industry groups.
Competitors are already moving
Vanguard's pivot comes as peers have already staked significant positions in tokenized assets. The tokenized real-world asset market has grown to $33.5 billion, including $14.9 billion in tokenized US Treasury products.
BlackRock oversees roughly $2.3 billion in tokenized assets, while Franklin Templeton manages about $2.5 billion in tokenized assets. WisdomTree's tokenized Treasury fund has grown to more than $700 million.
Franklin Templeton has moved aggressively. In March, it partnered with Ondo Finance to offer tokenized versions of its ETFs accessible through crypto wallets. The firm also launched a dedicated cryptocurrency investment division following its acquisition of crypto asset manager 250 Digital.
Other institutions are equally active. JPMorgan filed in May to launch a tokenized money market fund for stablecoin issuers. State Street introduced a government money market fund for stablecoin reserves and a tokenized liquidity product the following month. In May, Fidelity launched a blockchain-based liquidity fund.
The competitive pressure is real. Fidelity's blockchain-based liquidity fund received its first crypto-native investment last month after Theo allocated $20 million to the product.
