Bitwise Launches Non-Custodial Onchain Vault, Advancing Institutional DeFi
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Non-Custodial Vault Innovation: Bitwise's launch of a non-custodial onchain vault through Morpho aims to provide institutional investors with yields of up to 6%, marking a new model for institutional DeFi adoption that emphasizes the blend of transparency and risk management.
- Morpho Infrastructure Transformation: Morpho is evolving from a yield optimization tool into a modular lending backbone that supports institution-grade strategies while minimizing reliance on reflexive leverage, thereby reducing liquidation risks and enhancing the appeal of institutional capital.
- Compliance and Transparency: In the post-2022 regulatory environment, Bitwise's deliberate avoidance of custody intermediation ensures assets remain non-custodial at all times, aligning with the expectations of regulators and investment committees, thereby increasing institutional trust in DeFi.
- Expansion to Real-World Assets: Bitwise plans to extend the vault model to additional stablecoins and real-world assets, reflecting the industry's growing interest in tokenized credit and onchain asset management, potentially transforming how asset managers interact with decentralized protocols.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
