Bitwise launches PAPY vault lending stablecoins against tokenized real assets with 5-6% target yield.

Bitwise Asset Management launched the PAPY vault on September 2, allowing users to earn yield by lending stablecoins against tokenized real-world assets via the Morpho protocol on Ethereum. Deposits are made in Agora's AUSD stablecoin, backed by US Treasuries, targeting an annual yield of 5-6% with a $1 billion capacity. Early yields are modest at around 1.35%, with most collateral in Huma Finance’s tokenized credit flows, making borrower credit quality crucial. This product marks Bitwise's move into more complex DeFi yield strategies with institutional-grade infrastructure.