BlockBeats News, September 2nd, Bitwise announced the launch of the Bitwise Premium RWA Vault (PAPY) on Morpho, and a partnership with the Agora stablecoin AUSD. Users can deposit AUSD into PAPY, where the funds will be lent out programmatically, collateralized by over-collateralized tokenized RWAs, to generate on-chain lending yields.

The collateral assets for PAPY include PST launched by Huma Finance for providing institutional cross-border payment financing; sUSDai launched by USDai, supported by AI GPU-related loans; and PRIME launched through collaboration between HastraFi and Figure, consisting of tokenized debt backed by prime residential net worth.

AUSD is backed by a full reserve of liquid assets such as short-term US treasuries, overnight, and reverse repurchase agreements. Bitwise is responsible for screening acceptable collateral for PAPY and setting programmable risk parameters. The vault is now officially live on Morpho.