Bitwise expands PAPY vault to Arc, enabling RWA lending

Arc: Arc is Circle's EVM-compatible Layer-1 blockchain designed for stablecoin-native finance, with USDC as native gas and support for tokenized assets and DeFi applications. It launched public mainnet in September 2026 with institutional validators and integrations including Aave and Morpho. The Bitwise PAPY-USDC vault expansion brings curated RWA lending to Arc users from day one. PST: PST is a tokenized real-world asset issued by Huma Finance, representing claims on cross-border payment financing to institutions. It serves as approved collateral in the Bitwise PAPY vault on Arc's Morpho deployment. The asset brings payment flow-based yield opportunities to onchain lenders. PAPY: PAPY is Bitwise's Premium RWA USDC vault deployed on Morpho, which lends deposits against overcollateralized tokenized real-world assets. It launched on Arc in mid-September 2026 as part of the network's public mainnet, initially accepting collateral including PST and sUSDai. The vault provides Arc users access to curated onchain RWA yield. USDC: USDC is Circle's stablecoin serving as the primary settlement and gas asset on Arc. It is the deposit currency for the PAPY vault on Morpho, enabling users to supply liquidity into RWA-backed lending markets. Arc's design makes USDC central to all financial activity on the network. Morpho: Morpho is a decentralized lending protocol enabling modular markets and curator-managed vaults for optimized credit allocation. It deployed on Arc at mainnet launch, powering the Bitwise-curated PAPY vault that connects USDC suppliers with approved RWA borrowers. Recent activity highlights Morpho's role in expanding DeFi to RWA strategies on new chains. sUSDai: sUSDai is a tokenized asset from USDai_Official backed by loans collateralized by GPUs powering AI infrastructure. It is one of the initial approved collaterals for borrowers in the PAPY-USDC vault on Arc. The inclusion expands the vault's diversification into AI-related real-world credit. Bitwise: Bitwise is a crypto asset manager curating specialized vaults that deliver yield from lending stablecoins against diversified tokenized real-world assets. It recently expanded its Premium RWA Vault (PAPY) to the Arc blockchain via Morpho, establishing a live RWA credit market on the new network. The strategy focuses on bringing durable traditional credit exposure onchain. Network Launch: Arc's public mainnet in September 2026 integrated Morpho and Aave lending from day one, enabling immediate curated RWA credit markets. RWA Collateral: The Bitwise vault on Arc initially accepts tokenized assets including PST from Huma Finance and sUSDai from USDai_Official as overcollateralized borrowing collateral. Yield Curation: Bitwise's strategy on Morpho combines multiple RWA types into a single diversified vault to deliver yield from traditional credit onchain.