The Bitwise and Morpho On-Chain Vault Era Begins

Bitwise to Offer On-Chain Vaults in Collaboration with Morpho

Bitwise, a leading company in the digital asset management field, is preparing to launch an innovative vault service for earning yields on-chain in collaboration with decentralized finance (DeFi) lending protocol Morpho. This new service aims to revolutionize asset management.

Vault Service Targeting 6% Annual Yield

In an announcement made via platform X, Bitwise stated that its new vault aims for a 6% annual yield by investing in over-collateralized lending pools. Company officials remarked, “Finance is moving on-chain. Vaults are an essential part of this, providing investors with a transparent way to earn digital returns on their assets.”

Strategy and Risk Management

The new vaults will be supported by multi-strategy solutions led by Bitwise’s head of management, Jonathan Man. Users aim to earn in the decentralized finance space by managing the assets they invest in these vaults through a third-party system. Additionally, the ability for users to deposit and withdraw funds at any time stands out as an important feature of this new approach.

Morpho's Start in 2025 and Growth Potential

According to DeFiLlama data, Morpho holds the title of the seventh largest DeFi platform with a total locked value (TVL) of $6.7 billion. Starting 2025 with $3.2 billion, the platform has quickly increased this value through a series of strategic partnerships. However, Morpho still has a long way to go to stand out in competition against giants like Aave.

These developments also highlight the increasing importance of the on-chain vault system described by Bitwise as “ETF 2.0.” Aiming to provide more accessible investment opportunities for users, these innovations are expected to have a significant impact in the DeFi space.