Bitwise launches on-chain vault with 6% yield target

Bitwise debuts its first on-chain vault via Morpho, targeting up to 6% USDC yield with a non-custodial DeFi strategy and plans to expand offerings for institutions.

Bitwise has launched its first on-chain vault through the Morpho protocol, targeting up to 6% yield by deploying USDC in overcollateralized lending markets. This move marks Bitwise’s entry into decentralized finance (DeFi) with a non-custodial approach, allowing users and institutions to retain control of their assets while accessing professionally managed, on-chain yield strategies. The vault operates on the Ethereum blockchain, leveraging smart contracts to automate allocations and manage risk. Bitwise plans to expand its offerings to include other stablecoins, crypto assets, and additional DeFi strategies such as real-world asset tokenization and decentralized exchange liquidity provision. This initiative aims to attract institutional interest by addressing custody, security, and compliance concerns, reflecting the broader trend of traditional finance integrating with DeFi. Bitwise refers to these on-chain vaults as “ETFs 2.0” and anticipates significant growth in assets under management as it continues to innovate in the DeFi sector.