Bitwise debuts AUSD vault lending against tokenized credit
DeFi & Yields ·
The Bitwise Premium RWA Vault, called PAPY, has gone live on Morpho, allowing depositors to earn yield on Agora's AUSD stablecoin through loans backed by tokenized real-world assets.
According to an announcement posted on X, the vault works by directing AUSD deposits into overcollateralized lending positions tied to a mix of tokenized credit instruments rather than purely onchain collateral. Bitwise selects which assets back the loans and sets the risk parameters governing the vault's exposure. The stated goal is to bring what the announcement describes as durable, traditional forms of credit onto blockchain infrastructure while giving depositors a yield stream tied to that underlying real-world value.
The collateral basket spans three distinct categories of assets. One component, PST, issued by Huma Finance, represents short-duration financing for cross-border payments made to institutions. A second, sUSDai from USDai, is backed by loans made against GPUs used in AI computing. The third, PRIME, issued by Hastra in partnership with Figure, consists of tokenized claims collateralized by prime home equity.
Deposits into the vault are denominated in AUSD, which Agora backs with short-term U.S. Treasuries, overnight and reverse repo agreements, and other liquid instruments. That backing structure is intended to keep the deposit asset itself stable while the vault's yield comes from the lending activity layered on top against the tokenized RWA collateral.
The launch adds to a growing set of Morpho-based vaults that route stablecoin liquidity into asset-backed lending rather than purely algorithmic or crypto-collateralized markets. Coverage of the launch has been corroborated by at least one additional source describing the same structure — an RWA vault lending AUSD against payment financing, AI-linked GPU loans, and home equity claims.
Not yet detailed publicly are the specific allocation weightings across the three collateral types, the vault's target or historical yield figures, redemption terms for depositors, or how risk parameters would be adjusted if one of the underlying RWA categories underperforms. Those mechanics, along with any independent audits of the collateral pools, remain to be clarified as the vault operates on Morpho.