Bitwise Premium RWA Vault (PAPY) reaches $8M in deposits within one day of launch
Bitwise launched its Premium RWA Vault, ticker PAPY, on the Morpho lending protocol on Ethereum, attracting over $8 million in deposits within its first 24 hours. The vault, which started with $639,000, offers a target APY of 5-6% derived from overcollateralized real-world assets rather than speculative token emissions. Deposits are denominated in Agora’s AUSD stablecoin, which is backed by short-term U.S. Treasuries managed by VanEck and custodied at State Street. The vault allocates capital across Huma Finance’s PST, Hastra PRIME, and sUSDai, with Bitwise curating the strategy parameters without taking custody of user assets. This launch represents a significant expansion of Bitwise’s on-chain infrastructure, positioning the firm to compete with institutional offerings like BlackRock’s BUIDL and Ondo Finance. By charging a flat 0.39% management fee with no performance fee, the product aims to attract capital seeking low-friction, yield-bearing alternatives to traditional money market accounts. With a $1 billion capacity cap, the vault currently utilizes less than 1% of its total headroom, signaling substantial room for growth in the competitive RWA sector.
- Bitwise PAPY vault reached $8.022 million in AUSD deposits within 24 hours on Morpho.
- The vault targets 5-6% APY through overcollateralized RWA allocations like Huma Finance's PST.
- AUSD reserves are managed by VanEck and custodied by State Street for institutional stability.
- PAPY charges a 0.39% flat management fee with no performance fees for investors.
Morpho is a decentralized lending protocol on Ethereum that allows for the creation of non-custodial vaults where curators set risk parameters and asset allocations. Bitwise is a major asset manager that has expanded into on-chain infrastructure to provide institutional-grade access to tokenized credit and yield-bearing assets. These vaults allow users to earn interest from real-world credit flows while maintaining self-custody of their underlying stablecoin deposits.