Bitwise Asset Management just opened a new vault that lets depositors earn yield by lending stablecoins against tokenized real-world assets, and it comes with a billion-dollar appetite. The Bitwise Premium RWA Vault, ticker PAPY, went live on September 2 using the Morpho lending protocol on Ethereum, marking the asset manager’s latest push into on-chain yield products designed for institutional tastes.
The vault accepts deposits in Agora’s AUSD stablecoin, a dollar-pegged token fully reserved in US Treasuries, managed by VanEck with State Street serving as custodian. Those deposits are then programmatically lent against a diversified basket of over-collateralized tokenized real-world assets to generate variable returns.
Inside the vault mechanics
PAPY is built as a non-custodial ERC-4626 vault, which is Ethereum’s standardized interface for tokenized yield-bearing positions. No lock-up period is required.
The target annual percentage yield sits between 5% and 6%, though early performance tells a more modest story. As of launch day, on-chain data showed roughly $638,633 in AUSD deposits, with an instant net APY of 1.35% and a 7-day APY of just 1.01%.
