Rebecca Cruz Bitwise joins forces with DeFi protocol Morpho to launch onchain vaults targeting 6 percent annual yields, positioning itself at the forefront of decentralized investment innovation in 2026.
Bitwise Expands into Onchain Vaults through Morpho Partnership
Bitwise is taking another decisive step toward shaping the future of decentralized finance with its latest move to launch onchain vaults via Morpho. The initiative marks a major milestone for the digital asset management firm as it seeks to bridge institutional-grade asset management with onchain transparency and programmable yield generation. The firm announced the launch on X, stating that the first vault aims to deliver a 6 percent annual percentage yield through overcollateralized lending pools.
The collaboration reflects a growing trend among asset managers embracing blockchain-native structures that remove intermediaries and enable investors to earn digital yields directly on their assets. Bitwise described vaults as a critical step in the ongoing transition of traditional finance to the blockchain era, emphasizing transparency, programmability, and accessibility.
A Strategic Entry into the Next Generation of Digital Yield Products
Bitwise’s entry into onchain vaults is more than just a new product launch it is a long-term strategy designed to redefine how investors interact with DeFi. According to the firm, the vaults on Morpho will operate under the guidance of portfolio manager and head of multi-strategy solutions, Jonathan Man, who will oversee curation, risk management, and execution.
The firm’s approach combines Bitwise’s institutional expertise with Morpho’s decentralized infrastructure. By leveraging overcollateralized lending pools, the vaults offer investors yield generation with greater transparency than traditional funds. Users can deposit or withdraw funds at any time, an appealing feature compared to staking protocols that lock assets for extended periods.
Onchain Vaults to Become the “ETFs 2.0” of 2026
Bitwise has already predicted that onchain vaults will double their assets under management in 2026, a forecast that underscores the growing institutional interest in decentralized asset management. In its latest market outlook, the firm referred to these vaults as “ETFs 2.0,” positioning them as the next major financial innovation comparable to the rise of exchange-traded funds in the early 2000s.
The company expects that the combination of transparent code, automated strategies, and flexible access will draw billions in new capital. This surge could propel onchain vaults into mainstream financial media coverage, signaling that decentralized yield strategies are no longer confined to crypto-native investors.
Vaults, Bitwise noted, share the same core objective as traditional funds: simplifying capital deployment while maximizing efficiency. The key difference lies in their foundation automated smart contracts instead of centralized intermediaries.
Morpho’s Expanding Role in the Institutional DeFi Landscape
For Morpho, the partnership with Bitwise represents another step in its evolution into one of the leading decentralized finance protocols. The Morpho team called the collaboration an important milestone in scaling its vault curation model and positioning its infrastructure for broader institutional adoption.
Morpho co-founder and CEO Paul Frambot expressed optimism about the growing momentum, highlighting how large financial institutions are beginning to engage directly with decentralized yield platforms. This trend is a strong validation of Morpho’s mission to merge efficiency, security, and transparency within DeFi lending markets.
The week of the Bitwise announcement also saw Morpho unveil another significant integration its curated vaults from Sentora being added to Kraken’s DeFi earn program. These developments collectively reinforce Morpho’s position as one of the key DeFi infrastructure providers entering 2026.
Morpho’s Surge in Total Value Locked Reflects DeFi’s Maturity
Morpho’s growth trajectory has been one of the most impressive stories in decentralized finance over the past year. Data from DeFiLlama shows that the protocol now holds around 6.7 billion in total value locked, placing it seventh among global DeFi platforms.
The platform began 2025 with just over 3 billion in value locked and nearly tripled that figure by the end of the year. Despite a temporary dip caused by a halted exploit attempt in April, Morpho rebounded strongly, reaching 8.5 billion in November following high-profile partnerships with Crypto.com and Société Générale’s digital asset subsidiary SG-FORGE.
While Aave still dominates the sector with more than 34 billion in total value locked, Morpho’s rapid growth and strong institutional collaborations suggest it could close the gap significantly in the coming years.
Bitwise’s Onchain Vaults Mark a Turning Point for Institutional DeFi
The launch of Bitwise’s onchain vaults via Morpho signals a clear evolution in digital asset management. It represents a convergence between the discipline of traditional investment management and the open, automated efficiency of decentralized finance.
With the ability to deposit and withdraw funds freely, investors gain both flexibility and trust through onchain transparency. Bitwise’s strategic expansion highlights how established firms are preparing for a new era of blockchain-native investment tools that prioritize accessibility, automation, and yield optimization.
As 2026 unfolds, both Bitwise and Morpho stand at the forefront of redefining how capital flows across decentralized networks. The partnership not only validates the strength of DeFi’s infrastructure but also showcases how onchain vaults could become the next-generation financial instruments shaping the global investment landscape.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
