Digital asset manager Bitwise has announced plans to roll out non-custodial onchain vaults through a partnership with decentralized lending protocol Morpho. The initiative reflects a broader shift toward blockchain-based investment products designed to offer transparency, flexibility, and direct access to decentralized finance yields.
Bitwise Onchain Vault Strategy Explained
The first vault strategy is designed to target approximately 6% annual percentage yield, achieved through overcollateralized lending pools on Morpho. These vaults allow users to deposit assets directly onchain while Bitwise oversees strategy selection, risk controls, and portfolio curation.\
Unlike traditional staking or lock-up products, the vaults are structured to allow deposits and withdrawals at any time, giving users greater liquidity and control over their capital. Returns are generated programmatically through smart contracts rather than intermediaries.
Onchain Vaults Positioned as “ETFs 2.0”
Bitwise has previously described onchain vaults as “ETFs 2.0”, predicting that assets under management in such products could double by 2026. The firm views vaults as simplified, blockchain-native investment vehicles where professional curators manage capital across decentralized protocols.
Morpho’s Growing Role in DeFi Infrastructure
Morpho has emerged as a major DeFi lending platform, with total value locked reaching $6.7 billion. After volatility earlier in the year, adoption accelerated following partnerships with major financial and crypto institutions, reinforcing Morpho’s position as a key infrastructure provider for onchain asset management.
Morpho co-founder Paul Frambot said on X;
The Bitwise–Morpho collaboration highlights the convergence of institutional asset management and decentralized finance, signaling growing confidence in onchain investment structures as scalable, regulated alternatives to traditional funds.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.