# The Two Mandates Powering Quintes's Institutional TVL Growth in 2026

*Unlocking GCC and Global Capital: Quintes's Tokenized Credit and Market-Neutral Strategies.*

By [Quintes](https://paragraph.com/@quintes) · 2026-01-07

finance, blockchain, money, institutional, tvl, defi

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The market is at a critical inflection point.

While institutional capital is actively seeking yield in digital assets, it remains constrained by specific risk, compliance, and legal barriers.

The most significant capital flows are currently directed toward **two distinct areas:**

*   Tokenized real-world assets ([RWAs](https://paragraph.com/@quintes/real-world-assets-from-dollar35b-growth-to-the-inevitable-trillion-dollar-revolution)) — with a particular emphasis on private credit.
    
*   Sophisticated market-neutral quantitative strategies.
    

The Quintes Protocol is 100% Focused on Capturing This Impending Wave of Capital.
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By combining institutional-grade custody, a robust legal framework, and a commitment to Shariah compliance, Quintes becomes uniquely positioned to bridge this gap.

Here is a deeper dive into the two mandates powering this strategy:

### **1\. The Tokenized Private Credit & RWA Mandate**.

This initiative structures Quintes as a Shariah-compliant, on-chain credit fund, designed to capture the largest and fastest-growing segment of institutional DeFi.

It offers stable, familiar, asset-backed yields, modeled in the 8-12% range, which appeal to a broad spectrum of allocators, from crypto-native hedge funds to traditional family offices.

This strategy's inherent alignment with Islamic finance principles makes it exceptionally potent for unlocking deep pools of capital within the Gulf Cooperation Council (GCC) market and other Shariah-conscious investor bases.

### 2\. The Delta-Neutral Arbitrage & Market-Making Mandate.

This mandate focuses on generating low-volatility, non-directional yield by mirroring the most common and sophisticated approaches employed by crypto hedge funds.

By leveraging Quintes's multi-manager, sub-advisory model, the protocol can partner with specialist quantitative trading firms to generate alpha from market inefficiencies, such as pricing spreads and funding rates, rather than relying on volatile, directional market movements.

This provides a crucial source of diversified, uncorrelated returns for the protocol's overall yield-generation engine.

Our Phased Rollout Plan
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We plan to first prioritize the Private Credit & RWA Mandate in the initial phase. Its broader market appeal, clearer product-market fit across diverse institutional types, and powerful Shariah-compliant narrative position it for rapid TVL growth and foundational stability. Once established, introducing the Delta-Neutral Mandate will attract specialist funds while adding essential diversification to the protocol's alpha sources.

The Data Behind the Opportunity
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As we progress into early 2026, [institutional surveys](https://www.coinbase.com/en-gb/institutional/research-insights/research/market-intelligence/2025-institutional-investor-survey) and market analyses from late 2025 confirm continued strong momentum in digital asset adoption, building directly on 2025 trends:

*   **55%** of traditional hedge funds now have exposure to digital assets (up from 47% in 2024), with average allocations around 7% of AUM and **71%** planning increases .
    
*   **83–86%** of institutions have exposure or plan allocations, with over three-quarters expecting to increase holdings in the coming year .
    
*   **59%** plan to allocate over 5% of AUM, reflecting crypto's shift to a core portfolio component.
    
*   Sustainable yield remains a primary driver, with **73%** citing stablecoin-based yield generation as a key use case, perfectly aligning with Quintes's focus on reliable, compliant returns.
    
*   DeFi engagement is projected to triple (from ~24% to **75%** within two years), fueled by lending, staking, and tokenized assets.
    

These developments reveal an accelerating shift: institutions are committing at scale, prioritizing diversified, low-volatility yields. Quintes's mandates are ideally positioned to capture this demand in a regulatory-clarified environment.

Solving the Institutional Barrier
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Despite bullish sentiment, large conservative capital (pensions, endowments, sovereign funds) remains sidelined due to two unresolved legal risks:

1.  Smart contract enforceability
    
2.  On-chain ownership clarity.
    

Past attempts like permissioned pools have delivered negligible TVL because KYC alone is insufficient. Quintes differentiates profoundly through:

*   Mandatory qualified custody (Fireblocks, Ceffu) for segregated, regulated asset protection.
    
*   Legally binding sub-advisory contracts with External Asset Managers (EAMs).
    

This creates true structural certainty institutions demand.

The Road Ahead
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Quintes is initiating structured allocator engagement to co-create final specifications and secure early commitments. This de-risked approach will cement its position as the premier institutional-grade "fund of funds on chain."

As trillions in capital seek compliant on-chain yields, Quintes stands ready to lead the next phase of institutional DeFi.

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*Originally published on [Quintes](https://paragraph.com/@quintes/the-two-mandates-powering-quintess-institutional-tvl-growth-in-2026)*
