Bitwise Asset Management has launched non-custodial vault strategies on Morpho, aiming for a 6% annual percentage yield (APY) on stablecoins. This initiative reflects a rising institutional interest in DeFi yield opportunities and the use of onchain infrastructure for risk-managed investment products. More strategies are anticipated as institutional participation in DeFi expands.
Bitwise Asset Management, a global crypto asset manager, has launched a new onchain investor offering through non-custodial vault strategies on Morpho, an onchain lending network.
The firm said its first vault strategy will target up to 6% annual percentage yield (APY) on stablecoins, with plans to expand into additional strategies over time. The launch reflects growing institutional interest in accessing decentralized finance (DeFi) yield opportunities through more structured and risk-managed products.
First Strategy Focused on Stablecoin Yield
Bitwise said its initial vault strategy on Morpho is designed to generate yield by investing in overcollateralized lending pools. The strategy currently targets an APY of around 6%, providing investors exposure to onchain fixed-income-style returns through transparent lending markets.
Vaults function similarly to a portfolio of lending positions, allocating capital across programmable strategies to earn digital yield. Bitwise said its approach will combine onchain infrastructure with professional oversight to help investors participate in DeFi markets.
Strategy and Risk Oversight Led by Jonathan Man
The vault curation and risk management will be led by Jonathan Man, CFA, Bitwise Portfolio Manager and Head of Multi-Strategy Solutions and DeFi Strategies.
“Decentralized finance offers compelling yield opportunities, but the complexity of managing onchain risk has kept many investors on the sidelines,” Man said.
“That’s why we’re so excited for Bitwise to enter vault curation. Bitwise provides value-add by layering professional guidance and risk management experience onto these non-custodial tools,” adds Man.
Bitwise said the strategy will draw on the expertise of its 140-person team of investment and technology professionals and the firm’s more than eight-year track record as a crypto specialist.
Morpho Highlights Institutional Demand for Onchain Infrastructure
Morpho provides programmable and non-custodial infrastructure for onchain lending and borrowing, with vaults operated through smart contracts that invest funds programmatically on behalf of users.
“Bitwise joining Morpho as a vault curator highlights growing institutional demand for allocating capital onchain through noncustodial infrastructure,” said Paul Frambot, co-founder and CEO of Morpho.
He added that Morpho Vaults are designed for institutional use, allowing professionally defined risk parameters to be expressed directly onchain.
“As major institutions like Bitwise recognise the value in diversified fixed-income strategies in digital assets, vaults are emerging as a core building block of onchain finance strategies,” Frambot said.
Vaults Positioned as Building Blocks of Onchain Finance
The launch comes as crypto firms increasingly frame vault strategies as a key component of the broader shift toward onchain financial markets.
Bitwise said it believes vaults offer investors a transparent way to earn digital yield while maintaining non-custodial control of assets. The company indicated more strategies are expected to follow as institutional participation in DeFi continues to expand.
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