Woofun AI reports that Vanguard is recruiting a head of digital assets to lead strategy on tokenization and stablecoins, marking a significant shift from its previous resistance to crypto products amid a booming real-world asset market. This hiring signal indicates a broader push into the sector after years of resisting crypto investment offerings. The move stands in stark contrast to the firm's long-standing skepticism, with CEO Salim Ramji and ETF analyst Nate Geraci previously highlighting the company's reluctance to engage with digital asset products.

The new executive will determine how Vanguard participates in digital assets, including evaluating client-facing products, tokenization, stablecoins, custody models, blockchain-based settlement, and digital asset operating infrastructure. This role also involves representing Vanguard in discussions with regulators, clients, and industry groups. Historically, the firm has resisted such moves; in August 2024, CEO Salim Ramji stated the company would not launch crypto exchange-traded funds, arguing it would not "copy competitors" despite the rapid adoption of spot Bitcoin ETFs. ETF analyst Nate Geraci highlighted this contrast in an X post, noting Vanguard had previously blocked customers from purchasing spot Bitcoin and Ether ETFs through its brokerage platform.

Founded in 1975, Vanguard manages approximately $12.5 trillion in global assets, according to the company. This hiring comes as asset managers push deeper into tokenization, a sector experiencing rapid growth. According to RWA.xyz data, the tokenized real-world asset market has grown to $33.5 billion, including $14.9 billion in tokenized US Treasury products. The expansion of this market underscores the increasing relevance of digital assets in traditional finance, prompting even historically skeptical firms like Vanguard to reconsider their stance.

Per Woofun AI, competitor moves in tokenization are accelerating, with Franklin Templeton managing about $2.5 billion in tokenized assets, BlackRock overseeing roughly $2.3 billion, and WisdomTree's tokenized Treasury fund growing to more than $700 million. In March, Franklin Templeton partnered with Ondo Finance to offer tokenized versions of its ETFs accessible through crypto wallets, and then launched a dedicated cryptocurrency investment division following its acquisition of crypto asset manager 250 Digital. JPMorgan and State Street have also entered the market for tokenized cash products, with JPMorgan filing in May to launch a tokenized money market fund for stablecoin issuers, while State Street introduced a government money market fund for stablecoin reserves and a tokenized liquidity product the following month.

Also in May, Fidelity launched a blockchain-based liquidity fund, which received its first crypto-native investment last month after Theo allocated $20 million to the product. This trend suggests that the industry is moving towards greater integration of digital assets, with major players increasingly adopting tokenization strategies. Vanguard's hiring of a digital assets chief marks a significant step in this direction, indicating a potential shift in the firm's long-standing skepticism towards crypto products.