Bitwise has launched its first on-chain vault, opening a new way for investors to earn yield directly on the blockchain through the Morpho protocol.
Summary
- Bitwise has launched its first on-chain vault as a curator on Morpho, marking its entry into non-custodial DeFi strategies.
- The vault targets around 6% APY through overcollateralized stablecoin lending with active risk management.
- The move reflects growing institutional interest in transparent, on-chain yield products.
The firm confirmed the launch on Jan. 26, describing the product as a non-custodial vault strategy curated by Bitwise but fully executed on-chain.
Users keep control of their funds, while Bitwise manages how capital is deployed across lending markets.
A non-custodial approach to on-chain yield
The initial vault is focused on stablecoins, beginning with USD Coin (USDC), and is built around overcollateralized lending pools on Morpho (MORPHO). Bitwise said the strategy currently targets returns of up to 6% annually, depending on market conditions.
Funds deposited into the vault are allocated to lending markets where borrowers post excess collateral, reducing counterparty risk. All positions remain visible on-chain, and there is no requirement to transfer custody to Bitwise or any centralized platform.
Strategy design and ongoing risk oversight are handled by Jonathan Man, CFA, who leads Bitwise’s multi-strategy solutions group. The firm noted that the vault draws on its broader research, trading, and risk infrastructure, which has been developed over several years of managing crypto investment products.
Bitwise expands beyond ETFs into DeFi infrastructure
The Morpho vault marks Bitwise’s first direct move into non-custodial decentralized finance strategies. Until now, the firm has been best known for exchange-traded products and research for traditional investors. This launch shows a shift toward building on-chain tools rather than only offering exposure through regulated wrappers.
Morpho has emerged as a popular platform for this type of setup, allowing professional managers to design lending strategies while relying on standardized smart contracts. Bitwise said it views on-chain vaults as a growing part of the market and plans to explore additional strategies over time.
The firm has not shared timelines for expansion or performance data yet, but framed the launch as an early step in a longer on-chain roadmap. As more capital moves toward blockchain-based finance, Bitwise’s entry suggests that asset managers are starting to treat DeFi as core infrastructure, not a side experiment.
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