- Bitwise launches non-custodial vault on Morpho, targeting 6% APY through lending.
- Strategy managed by Jonathan Man focuses on overcollateralized stablecoin pools.
- Asset manager enters DeFi infrastructure after years focusing on ETF products.
Bitwise has introduced its first blockchain-based vault through the Morpho protocol, providing investors with direct on-chain yield opportunities. The crypto asset manager announced the launch on January 26 and called the product as a non-custodial strategy curated by Bitwise professionals while executing entirely on decentralized infrastructure.
The vault allows users to maintain control of their capital while Bitwise decides how funds are deployed across lending markets. This structure removes custody transfer requirements to centralized platforms or the asset manager itself. All positions remain transparent and visible on blockchain networks.
Stablecoin Lending Structure
The initial vault concentrates on stablecoin strategies beginning with USD Coin, built around overcollateralized lending pools operating on Morpho. Bitwise stated the strategy currently aims for returns approaching 6% annually, with actual performance varying based on market conditions.
Capital deposited into the vault flows to lending markets where borrowers must post collateral exceeding loan values, reducing counterparty exposure. This overcollateralization requirement provides a buffer against borrower defaults or collateral value declines.
Jonathan Man, who leads Bitwise’s multi-strategy solutions group, oversees strategy design and ongoing risk management. The firm emphasized that the vault leverages its research, trading, and risk infrastructure developed over more than eight years operating cryptocurrency investment products.
DeFi infrastructure becomes core business focus
The Morpho vault is Bitwise’s first direct entry into non-custodial decentralized finance strategies. Previously, the firm concentrated on exchange-traded products and research serving traditional investors seeking cryptocurrency exposure through regulated vehicles.
Morpho has earned popularity as a platform that enables professional managers to construct lending strategies while using standardized smart contracts. The protocol separates strategy curation from underlying execution infrastructure, allowing asset managers to focus on allocation decisions and risk management.
Bitwise characterized on-chain vaults as a growing market segment and shared plans to explore additional strategies over time. The firm has not disclosed timelines for expansion or released performance data from the initial vault.
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