Bitwise Asset Management, a global crypto asset manager with $9 billion in client assets, announced the launch of PAPY, the Bitwise Premium RWA Vault. The vault accepts AUSD stablecoin deposits and lends against a diversified set of real-world asset (RWA) collateral that includes PST, sUSDai, and PRIME, targeting a 5–6% variable APY. By lending against real-world credit, PAPY aims to deliver yield that is more durable and less correlated with crypto markets than most onchain lending offers today. 

How PAPY works. Lenders deposit AUSD into the PAPY vault on the Morpho protocol. Those deposits are then lent to borrowers who post white-listed RWA collateral and pay an algorithmically derived, variable interest rate. For the PAPY vault, Bitwise's curation involves predetermining the vault's parameters and precalibrating its models—including acceptable collateral, loan-to-value ratios, and interest-rate configuration—without taking custody of or exercising discretionary management over user assets.

The featured RWA markets upon launch include:

• Huma Finance's PST: Short-duration cross-border payment financing. Loans are made to licensed financial institutions on one- to seven-day terms, with zero historical defaults across $17 billion in transaction volume.
   
• USDai: Loans backed by GPUs powering AI infrastructure. The collateral sits in a bankruptcy-remote SPV with a first-priority lien, is independently monitored, and loans self-liquidate; its value is warranted and reinsured via a Munich Re subsidiary.
   
• Hastra PRIME: A tokenized claim on a warehouse lending facility collateralized by prime home equity, with rates set on a rolling one-hour term and automatic substitution of any non-performing loans. ($PRIME is issued by Hastra, a protocol built in partnership with Figure.)

AUSD, the deposit asset. Deposits are made in AUSD, Agora's stablecoin, which is fully collateralized by U.S. Treasury bills, overnight and reverse repo, and other liquid assets. AUSD's reserves are managed by VanEck and custodied at State Street.