Bitwise Adds USDC Vault PAPY to Arc

Bitwise Asset Management, a crypto asset manager focused on digital assets, has expanded its Premium RWA Vault (PAPY) to the Arc blockchain. The new PAPY-$USDC vault launched as part of Arc’s public mainnet release.

The vault accepts $USDC deposits and uses them to provide overcollateralized loans backed by tokenized real-world assets (RWAs). The target yield is 5–6% APY. Users deposit $USDC into the vault through Morpho, a DeFi lending protocol. The funds are then lent to borrowers who provide approved RWA collateral. Bitwise sets the vault parameters, including acceptable collateral, loan-to-value ratios and interest rate settings, but does not take custody of user funds.

The PAPY-$USDC vault accepts collateral from Huma Finance, a financial infrastructure company focused on payment financing, and USDai, a lending product backed by GPUs used for AI infrastructure. Excess liquidity is allocated to lending markets backed by cirBTC.

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