Bitwise Launches Its First On-Chain Vault for Crypto Yield
Bitwise has officially stepped into decentralized finance with the launch of its first on-chain vault, giving investors a new way to earn yield directly on the blockchain.
The vault runs on the Morpho protocol and focuses on non-custodial stablecoin lending, starting with USDC. That means users keep full control of their funds at all times, while Bitwise handles how the capital is deployed across lending markets.
According to the company, the strategy is currently targeting around 6% annual yield, depending on market conditions.
How the vault works
Funds deposited into the vault are lent out through overcollateralized pools, where borrowers must post more collateral than they borrow. This setup helps reduce risk and is fully transparent, with all positions visible on-chain.
There’s no need to hand assets over to Bitwise or any centralized platform. Everything runs through smart contracts, and users can see exactly where their money is at all times.
Bitwise manages the strategy itself, including risk controls and market selection. Oversight is led by Jonathan Man, CFA, who heads the firm’s multi-strategy solutions group. The company says the vault uses the same research and risk framework it has built over years of managing crypto investment products.
A shift beyond ETFs
Until now, Bitwise has been best known for crypto ETFs and research aimed at traditional investors. This launch marks its first real move into DeFi infrastructure, showing a clear shift toward building directly on-chain rather than relying only on regulated wrappers.
Morpho has become a popular platform for this kind of setup, allowing professional managers to design lending strategies while using standardized, audited smart contracts.
Bitwise says this vault is just the beginning. While it hasn’t shared performance data or timelines for new products yet, the firm sees on-chain vaults as a growing part of the market.
As more institutional money looks for transparent, blockchain-based yield, Bitwise’s move signals that DeFi is no longer seen as experimental — it’s starting to look like core financial infrastructure.
