Bitwise Expands Onchain Solutions With Introduction of Non-Custodial Vault Curation on Morpho

Bitwise’s first vault strategy with Morpho will aim to generate up to 6% APY¹ on stablecoins, with plans to expand into several other strategies.

Bitwise Asset Management, a global crypto asset manager with more than $15 billion in client assets, today announced a new onchain investor solution: non-custodial vault curation. The vault offering is powered by Morpho, an onchain lending network that provides programmable and non-custodial infrastructure for onchain lending and borrowing. The underlying strategy and real-time risk management are led by Jonathan Man, CFA, Bitwise Portfolio Manager and Head of Multi-Strategy Solutions and DeFi Strategies, leveraging the expertise of Bitwise’s 140-person team of technology and investment professionals.

Vaults are onchain lending strategies that function similarly to a portfolio of lending positions. Bitwise’s first vault strategy is powered by Morpho’s open, modular architecture for implementing scalable, custom onchain strategies with systematic risk management. The Bitwise strategy on Morpho’s vault currently targets an annual percentage yield of 6%.

“Decentralized finance, or DeFi, offers compelling yield opportunities, but the complexity of managing onchain risk has kept many investors on the sidelines," said Bitwise’s Man. “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.”

Morpho’s vault utilizes a set of smart contracts to programmatically invest funds on behalf of its clients with the aim of generating digital yield.

“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. “Morpho Vaults are built for institutional use, enabling professionally defined risk parameters to be expressed directly onchain and making them the perfect foundation for Bitwise’s entry into vault curation. 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.”

The launch reinforces a key theme referenced in Bitwise’s 2026 predictions: that onchain vaults would see assets under management double this year.

Notes:

(1) 6% APY is the target rate as of January 26, 2026, and is subject to change based on market conditions.

About Morpho

Morpho is an onchain lending network with $10B+ in deposits connecting lenders and borrowers to the optimal opportunities worldwide. Businesses can utilize Morpho's open infrastructure to power any lending or borrowing use case at scale, including embedded crypto-backed loans, custom yield solutions, and vault curation. Morpho serves as the backend powering innovative financial institutions and enabling leaders like Bitwise to deploy secure, scalable, and custom onchain strategies.

About Morpho Vaults

Vaults are onchain lending strategies that function similarly to a portfolio of lending positions. They combine liquidity, strategy execution, and risk constraints within a single transparent structure, rather than simply replicating legacy financial products onchain.

About Morpho Curators

Curators are independent teams or entities that define the overall strategy for a Morpho Vault and oversee its risk framework, including collateral requirements, exposure limits, and allocation parameters.

Risks and Important Information

Participation in DeFi vault lending comes with certain risks that lenders should consider. DeFi vault lending relies on smart contracts, which may contain vulnerabilities or bugs despite security audits. Price data on the platform is provided through oracles, and incorrect or manipulated feeds could lead to unwanted liquidations or bad debt. As with any protocol, a bug or error to the code in the smart contract could lead to a complete loss of funds. 

Lenders may experience bad debt if collateral values drop too quickly for liquidations to occur. Bad debt is shared among users of the same vault. If a borrower is liquidated but the collateral is not enough to cover the debt, the loss is socialized among the lenders in that specific vault. You could see your balance decrease slightly to cover the gap. 

Unlike mainstream borrowing and lending entities such as traditional FDIC insured banks, which are backed by the full faith and credit of the United States Government, DeFi vaults are not FDIC insured and investors run the full risk of losing their entire investment if the markets and vaults default. 

Lenders are subject to liquidity risk if a market is 100% utilized (everyone has borrowed the available funds) and may have to wait for someone to repay their loan before their deposit can be withdrawn. Liquidity risk can also affect lenders if funds are temporarily unavailable for withdrawal during high market demand.