Nikolas Sargeant
Bitwise Asset Management has launched non-custodial vault strategies on Morpho, an onchain lending network, with its initial offering targeting up to 6% annual percentage yield on stablecoins as the crypto asset manager expands institutional access to decentralized finance yield opportunities.
The firm stated its first vault strategy will generate returns through investment in overcollateralized lending pools, with plans to expand into additional strategies over time. The launch reflects growing institutional interest in accessing DeFi yield through more structured and risk-managed products rather than direct protocol interaction.
Bitwise characterized its initial vault strategy on Morpho as designed to provide investors exposure to onchain fixed-income-style returns through transparent lending markets. Vaults function similarly to portfolios of lending positions, allocating capital across programmable strategies to earn digital yield while maintaining non-custodial control of assets.
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 stated.
"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," Man added, emphasizing the firm's institutional approach to DeFi participation.
Bitwise indicated the strategy will leverage expertise from its 140-person team of investment and technology professionals and the firm's more than eight-year track record as a cryptocurrency specialist. The institutional backing differentiates the offering from typical DeFi protocols that lack professional oversight and risk management frameworks.
Morpho provides programmable and non-custodial infrastructure for onchain lending and borrowing, with vaults operated through smart contracts that invest funds algorithmically 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.
Frambot 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," he stated.
The launch arrives as cryptocurrency firms increasingly position vault strategies as fundamental infrastructure for the broader transition toward onchain financial markets. Bitwise indicated more strategies are expected as institutional participation in DeFi continues expanding beyond early adopter phases.
