Bitwise has launched its first on-chain vault, opening a brand new means for buyers to earn yield immediately on the blockchain by means of the Morpho protocol.
Abstract
- Bitwise has launched its first on-chain vault as a curator on Morpho, marking its entry into non-custodial DeFi methods.
- The vault targets round 6% APY by means of overcollateralized stablecoin lending with energetic danger administration.
- The transfer displays rising institutional curiosity in clear, on-chain yield merchandise.
The agency confirmed the launch on Jan. 26, describing the product as a non-custodial vault technique curated by Bitwise however absolutely executed on-chain.
Customers preserve management of their funds, whereas Bitwise manages how capital is deployed throughout lending markets.
A non-custodial method to on-chain yield
The preliminary vault is targeted on stablecoins, starting with USD Coin (USDC), and is constructed round overcollateralized lending swimming pools on Morpho (MORPHO). Bitwise mentioned the technique at present targets returns of as much as 6% yearly, relying on market circumstances.
Funds deposited into the vault are allotted to lending markets the place debtors put up extra collateral, lowering counterparty danger. All positions stay seen on-chain, and there’s no requirement to switch custody to Bitwise or any centralized platform.
Technique design and ongoing danger oversight are dealt with by Jonathan Man, CFA, who leads Bitwise’s multi-strategy options group. The agency famous that the vault attracts on its broader analysis, buying and selling, and danger infrastructure, which has been developed over a number of years of managing crypto funding merchandise.
Bitwise expands past ETFs into DeFi infrastructure
The Morpho vault marks Bitwise’s first direct transfer into non-custodial decentralized finance methods. Till now, the agency has been finest recognized for exchange-traded merchandise and analysis for conventional buyers. This launch reveals a shift towards constructing on-chain instruments slightly than solely providing publicity by means of regulated wrappers.
Morpho has emerged as a preferred platform for the sort of setup, permitting skilled managers to design lending methods whereas counting on standardized good contracts. Bitwise mentioned it views on-chain vaults as a rising a part of the market and plans to discover extra methods over time.
The agency has not shared timelines for growth or efficiency information but, however framed the launch as an early step in an extended on-chain roadmap. As extra capital strikes towards blockchain-based finance, Bitwise’s entry means that asset managers are beginning to deal with DeFi as core infrastructure, not a facet experiment.
