Bitwise Asset Management has expanded its Premium RWA Vault (PAPY) to the Circle Arc blockchain. The new PAPY-USDC product launched on September 16, 2026, coinciding with the public mainnet debut of Arc. The vault operates on the Morpho lending protocol using Vault V2 architecture.
The vault allows users to deposit USDC, which is then lent to borrowers providing tokenized real-world assets as overcollateralized security. Accepted collateral includes Huma Finance’s PST and sUSDai, with potential future allocations to cirBTC markets. Bitwise acts as a non-custodial curator, setting rules for collateral and interest models.
As of early October 2026, the vault reported a net APY between 4.8% and 5.55%, with a target range of 5-6%. The fee structure includes a management fee of approximately 0.39-0.4% and no performance fees. The vault follows the ERC-4626 standard and imposes no lock-up requirements on depositors.
Current deposits in the vault range between $418,000 and $422,000, with a total capacity capped at approximately $1 billion. This follows the September 2, 2026, launch of a PAPY-AUSD vault on Ethereum, which secured over $20 million in deposits within two weeks.
