October 5th 2026, 1:35 AM
DeFi RWA Lending Gains Boost from Circle Partnership
Key Summary
Bitwise has launched a Premium RWA Vault (PAPY) on Circle's Arc blockchain, offering a net annual percentage yield (APY) of 4.79%. The vault, PAPY-USDC, targets a variable APY of 5-6% and uses the Morpho lending protocol's Vault V2 architecture. Depositors can withdraw their USDC deposits at any time, subject to available liquidity. The vault accepts Huma Finance's PST and sUSDai as collateral, with a maximum capacity of $1 billion. This move reinforces Morpho's role as infrastructure for curators to deploy across multiple networks, with Bitwise now running PAPY on Morpho on both Ethereum and Arc.
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Integration Details
Bitwise, a leading cryptocurrency company, has successfully integrated its PAPY vault onto Circle's Arc platform. This move marks a significant expansion of DeFi's appeal, as it offers diversified RWA lending opportunities to users.Market Implications
The integration of Bitwise's PAPY vault onto Circle's Arc may have a positive impact on market liquidity. By providing a new avenue for RWA lending, the platform may attract more institutional investors and users, thereby increasing the overall liquidity of the US DeFi market.Regulatory Environment
The partnership between Bitwise and Circle is a significant development in the US DeFi space. The involvement of a well-established company like Bitwise and a reputable platform like Circle may help to legitimize DeFi and attract more mainstream investors.#DeFi#USDC#RWA#Circle#Bitwise