Bitwise Launches Onchain USDC Vault Targeting 6% Yield via Morpho Protocol

Bitwise Asset Management has entered the DeFi vault arena with a non-custodial USDC yield strategy on the Morpho Protocol, marking its first venture into decentralized finance curation. The vault utilizes over-collateralized lending markets to target up to 6% annual yield while upholding institutional-grade risk management standards.

This initiative coincides with Morpho cementing its status as the seventh-largest DeFi protocol, boasting a total value locked (TVL) of $6.7 billion—more than double its January 2025 figure. Led by Bitwise portfolio manager Jonathan Man, the firm positions this launch as a key component of its broader 'ETFs 2.0' vision for onchain asset management.

Market analysts highlight that the timing aligns with Bitwise's 2026 projection that assets under management (AUM) in onchain vaults will double. The firm intends to expand the offering to include additional stablecoins and DeFi strategies, leveraging Morpho's established, blue-chip lending infrastructure.