Bitwise Premium RWA Vault (PAPY) Launches on Morpho With Agora’s AUSD

PAPY earns yield by lending AUSD deposits programmatically against a diversified set of overcollateralized tokenized real-world assets (RWAs) on the Morpho protocol, targeting 5–6% variable APY

Bitwise Asset Management, a global crypto asset manager with $9 billion in client assets, announced the launch of PAPY, the Bitwise Premium RWA Vault. The vault accepts AUSD stablecoin deposits and lends against a diversified set of real-world asset (RWA) collateral that includes PST, sUSDai, and PRIME, targeting a 5–6% variable APY. By lending against real-world credit, PAPY aims to deliver yield that is more durable and less correlated with crypto markets than most onchain lending offers today.

How PAPY works. Lenders deposit AUSD into the PAPY vault on the Morpho protocol. Those deposits are then lent to borrowers who post white-listed RWA collateral and pay an algorithmically derived, variable interest rate. For the PAPY vault, Bitwise’s curation involves predetermining the vault’s parameters and precalibrating its models—including acceptable collateral, loan-to-value ratios, and interest-rate configuration—without taking custody of or exercising discretionary management over user assets.

The featured RWA markets upon launch include:

• Huma Finance’s PST: Short-duration cross-border payment financing. Loans are made to licensed financial institutions on one- to seven-day terms, with zero historical defaults across $17 billion in transaction volume.
• USDai: Loans backed by GPUs powering AI infrastructure. The collateral sits in a bankruptcy-remote SPV with a first-priority lien, is independently monitored, and loans self-liquidate; its value is warranted and reinsured via a Munich Re subsidiary.
• Hastra PRIME: A tokenized claim on a warehouse lending facility collateralized by prime home equity, with rates set on a rolling one-hour term and automatic substitution of any non-performing loans. ($PRIME is issued by Hastra, a protocol built in partnership with Figure.)

AUSD, the deposit asset. Deposits are made in AUSD, Agora’s stablecoin, which is fully collateralized by U.S. Treasury bills, overnight and reverse repo, and other liquid assets. AUSD’s reserves are managed by VanEck and custodied at State Street.

Note: All descriptions and figures above are as stated by provider.

Why RWAs? Most onchain yield today comes from two crowded models: commoditized bitcoin-backed lending or crypto-native yield farming. PAPY offers a more durable approach. Loans secured by RWAs tap deeper traditional-finance credit markets, so the interest borrowers pay isn’t tied to crypto cycles or onchain liquidity.

“We believe a diverse basket of collateral gives users a better risk-adjusted lending experience, but that only works with a specialist curator,” said Jonathan Man, Portfolio Manager at Bitwise. “Our team brings 20-plus years of experience across structured credit, private credit, and the technology behind DeFi, and that’s what informs our approach to bringing real-world asset collateral onchain with the Bitwise Premium RWA Vault.”

“We’re excited to have Bitwise curating on Morpho and launching their first strategy on the network,” said Paul Frambot, CEO and Co-Founder of Morpho. “Morpho supports a rich set of RWAs and what Bitwise adds is the expertise to combine them into a single diversified strategy, giving users new curated ways to access real-world yield. This is how the Morpho network expands into new risk profiles and strategies that weren’t possible before.”

“We’re really excited to work with Bitwise,” said Nick van Eck, CEO and Co-Founder of Agora. “It comes down to high-quality, high-integrity partners working together to steer users in the right direction. More and more institutional managers are choosing AUSD for structured credit and RWA strategies, and Bitwise’s PAPY launch is a strong example of where that’s headed.”

As more of the world’s capital moves onchain, Bitwise expects real-world assets to lead the way—and PAPY, the Bitwise Premium RWA Vault, is designed to give lenders access to that trend through a transparent, programmatic lending infrastructure. It’s the newest way Bitwise is connecting traditional finance and onchain markets, from ETFs and staking to tokenized portfolios and vault curation.