Bitwise Expands RWA Vault to Arc Blockchain with USDC Lending — Bitwise Asset Management, Inc.

Event summary

Bitwise's Premium RWA Vault (PAPY) now accepts USDC deposits on the Arc blockchain, targeting 5-6% APY.
The vault lends against overcollateralized tokenized real-world assets (RWAs) via the Morpho protocol.
PAPY-USDC follows the launch of PAPY-AUSD on Ethereum, which has attracted $20M in deposits since mid-September 2026.
Arc's stablecoin-native settlement and institutional validator set are cited as key advantages for PAPY-USDC.
Bitwise manages $9B in client assets and offers over 70 investment products.

The big picture

Bitwise's expansion to Arc underscores the growing institutional interest in stablecoin-native blockchain solutions for real-world asset tokenization. The move positions Bitwise to capture a segment of the $74B USDC market, while competing with traditional onchain lending models. The strategic focus on RWAs aims to decouple yield from crypto market volatility, appealing to traditional finance investors.

What we're watching

Market Adoption: Whether PAPY-USDC can attract significant deposits on Arc, following the $20M success of PAPY-AUSD on Ethereum.
RWA Integration: How Bitwise's curated RWA strategies will expand DeFi into new risk profiles and institutional capital allocation.
Competitive Positioning: The pace at which Bitwise can differentiate its RWA vaults in a growing market of stablecoin lending products.