Bitwise launches non‑custodial on‑chain vaults on Morpho, targets ~6% APY

Bitwise Asset Management has launched its first on‑chain vault strategy on the Morpho protocol, marking the firm’s formal entry into decentralized finance with a non‑custodial product that places user funds on‑chain while Bitwise curates the strategy ^[1][3][5][6].

The initial vault strategy targets roughly 6% annual percentage yield by deploying assets into Morpho’s over‑collateralized lending pools; Bitwise will design and oversee the strategy while users retain custody of their funds on‑chain ^[3][4][2].

Industry observers framed the launch as a potential turning point for institutional DeFi adoption, illustrating a model where traditional asset managers provide governance and strategy overlays while leveraging DeFi primitives like Morpho’s lending infrastructure for conservative, cash‑management‑style yield ^[2][1].

Bitwise’s Morpho vault rollout represents an early example of an institutional asset manager offering non‑custodial, on‑chain yield solutions and signals growing interest in integrating traditional asset management practices with DeFi infrastructure ^[5][4].