Bitwise's PAPY Vault Surpasses $12M in Total Value Locked

Bitwise Asset Management's new product, the Premium RWA Vault (PAPY), has reached an impressive milestone, surpassing $12 million in total value locked just days after its launch. The vault, which runs on Ethereum and Morpho, a non-custodial lending protocol, allows users to deposit Agora's AUSD stablecoin and earn a variable 5-6% APY.

The vault's rapid growth is notable, crossing $8 million in total value locked within its first 24 hours. By September 10, 2026, the total value had climbed to $13.267 million. The collateral basket currently includes three assets: Huma Finance's PST (39.74%), Hastra's PRIME (26.29%), and sUSDai (21.26%).

Bitwise controls the governance parameters for PAPY, deciding which assets qualify as collateral, loan-to-value ratios, and interest rates. However, it does not take custody of deposited funds, which remain in user wallets or Morpho's contracts.