Digital asset manager Bitwise has partnered with DeFi lending protocol Morpho to launch non-custodial onchain vaults, with the first strategy targeting a 6% annual yield through over-collateralised lending pools.
The vault launch was announced on X on Monday, with Bitwise positioning the product as a transparent, onchain way for investors to generate yield without relying on custodians.
“Finance is moving onchain. Vaults are a key part of that, offering investors a transparent way to earn digital yield on their assets,”
Bitwise said.
The vault strategies will be curated and risk-managed by Bitwise, led by portfolio manager and head of multi-strategy solutions Jonathan Man, and will allow users to deposit or withdraw funds at any time.
The move follows Bitwise’s recent forecast that onchain vaults, which it has dubbed “ETFs 2.0,” could double assets under management in 2026 as more capital flows into curated DeFi strategies.
“Vaults share a similar goal to traditional funds — providing users with a simpler way to deploy capital more effectively and efficiently,”
Morpho said, highlighting the use of automated code instead of intermediaries.
Morpho co-founder and chief executive Paul Frambot said the partnership marks an important step for the protocol’s infrastructure positioning as institutional participation grows.
Morpho is currently the seventh-largest DeFi platform with about $6.7 billion in total value locked, though it still trails market leader Aave, which holds more than $34 billion.