Ripple, a U.S.-based enterprise blockchain developer, has unveiled Ripple Treasury, which is powered by its recently acquired GTreasury platform, marking a strategic push into the $120 trillion global corporate treasury market.

The launch, announced on Wednesday, positions the blockchain infrastructure firm to target Fortune 500 finance teams worldwide. The firm aims to modernize how companies manage, move, and deploy liquidity by replacing slow, bank-centric systems with real-time, blockchain-based infrastructure.

Today, we're proud to introduce Ripple Treasury, Powered by GTreasury: the world's first comprehensive treasury platform combining 40 years of proven enterprise expertise with cutting-edge digital asset infrastructure.

Many finance teams are stuck managing growing complexity… pic.twitter.com/4scNUggARS

— GTreasury (@GTreasury) January 27, 2026

A calculated strike at idle capital

At the core of Ripple’s strategy is how hundreds of billions of dollars sit idle every day inside corporate balance sheets, trapped by slow settlement cycles, pre-funding requirements, and fragmented banking infrastructure. Ripple estimates that around $700 billion in corporate capital remains effectively stagnant, not because companies want it that way, but because legacy systems leave them few alternatives.

By absorbing GTreasury and rolling out Ripple Treasury as a unified platform, Ripple is positioning itself as an operating system for CFOs, one that spans traditional cash, digital assets, and real-time liquidity management under a single roof.

What Ripple Treasury changes for users

Ripple Treasury shifts treasury operations from fragmented systems to a single, always-on platform. By merging GTreasury’s enterprise tooling with Ripple’s blockchain rails, finance teams gain real-time visibility across cash, FX exposure, payments, and digital assets, without being limited by banking hours or geography.

For day-to-day operations, the most significant changes are speed and control, according to the official release. Cross-border payments settle in seconds instead of days, FX risk is compressed to near-zero during transfers, and companies no longer need to pre-fund overseas accounts just to keep vendors paid on time. In practice, users gain:

• One view across fiat, stablecoins, and tokenized assets
• 24/7 settlement and liquidity, including weekends
• Reduced FX exposure and faster vendor payments
• Yield generation on cash that previously sat idle

The result is a treasury stack designed to operate at internet speed rather than traditional banking speed.

Beyond cross-border payments

Ripple’s purchase of GTreasury marks its third major acquisition in 2025, following deals for Hidden Road and the stablecoin platform Rail. Together, these moves signal a shift beyond bank-focused payments toward a broader role as a full-stack financial infrastructure provider for large enterprises.

If successful, Ripple Treasury could reshape how Fortune 500 companies manage cash, turning treasury from a back-office safeguard into an active tool for unlocking and deploying capital.

For Ripple, the goal is to modernize how corporations move and deploy money, and the rest of enterprise finance will follow.

Also read: Ripple Enters Saudi Banking Sandbox With Riyad Bank’s Jeel

The Tron network is experiencing a surge in active users, reaching 4.59 million on Tuesday, i.e., a 36% increase from the previous month. As the network continues to dominate stablecoin settlement, its token TRX fails to show any significant movement in the market.

Yet as count rises, the TRON (TRX) token price remains largely unmoved. At the time of writing TRX is trading at $0.2947, reflecting a decline of 0.42% over 24 hours. The total market capitalization stands at $27.91 billion and the circulating supply currently is 84.71 billion TRX.

For investors, the divergence is becoming impossible to ignore: Tron adoption is accelerating, but the token is failing to capture it.

Stablecoin dominance drives activity–not TRX demand

Meanwhile, the growth in active accounts is mainly due to Tron’s strong position in the stablecoin market and its focus on real-world use. By prioritizing low fees and speed instead of speculative hype, the network has attracted a steady user base. This trend is expected to keep going as the network adds more features for high-volume financial services.

The main reason for this user increase is Tron hosting over $82 billion UDT in supply. This accounts for more than 98% of the stablecoin volume on the network, making Tron a key settlement layer for USDT. The network’s integration with the Base network in December 2025 improved its cross-chain capabilities. This allows the TRX token to connect with Coinbase’s Layer 2 ecosystem.

Price Analysis: high usage, low value capture

The latest 4-hour TRX/USDT chart shows that token is continuing to compress inside a descending wedge. This indicates that TRX is experiencing selling pressure despite stable network fundame.

At the time of writing TRX is trading near $0.2928, having failed multiple times to reclaim the $0.30–$0.31 resistance zone since January 24.  Each bounce has been met with lower highs, while support has gradually shifted down toward the $0.29 area, confirming a short-term downtrend.

Volume has also declined steadily during this compression phase, indicating waning speculative participation even as on-chain usage rises. Moreover, onchain data shows no corresponding increase in spot accumulation.

Momentum indicators remain weak. The Relative Strength Index (RSI) is at 36.3, below the neutral 50 level and approaching oversold territory, signaling that bearish momentum still dominates. 

Most fees on Tron are paid via bandwidth and energy credits, not through direct TRX spending, which limits fee-driven buy pressure even as daily transactions exceed 10 million.

AI and technical roadmap

The overall impact of this user growth is shown in the network’s revenue, which has recently surpassed that of other major blockchains. The 2026 roadmap includes the Java-tron v4.8.1 upgrade to improve EVM compatibility and a project focused on integrating artificial intelligence into DeFi and NFTs. These upgrades aim to attract more developers and boost on-chain use.

Also Read: River Token Jumps Nearly 2000% in January: Will the Rally Hold?

Japan’s Financial Services Agency (FSA) is seeking opinions from the public concerning new draft rules that will govern how stablecoins are backed and how crypto-related services are supervised under the country’s updated payments law.

This process is open until February 27, 2026, and follows previous changes on the Payment Services Act, which was passed in June 2025 to set the rules for how money and electronic payments are handled in the country.

In a statement released on Monday, the FSA said it has prepared a set of draft regulatory notices linked to Act No. 66 of 2025. These notices are part of the country’s overhaul of rules that cover its settlement system and electronic payment methods. The agency explained that the drafts are meant to define how regulated stablecoins should be backed and supervised under the law.

Clear rules for stablecoin reserve assets

One major part of the rules focuses on reserve assets used by regulated stablecoins that rely on trust structures. In Japan, companies that issue stablecoins often rely on a structure known as “specified trust beneficiary interests.” The new rules explain how assets under this structure can be invested and what types of financial products are allowed to support stablecoin value.

According to the draft notice, only certain foreign-issued bonds will qualify as reserve assets. The FSA said these bonds must meet two conditions. First, they must carry a very high credit rating and fall within a credit risk category of “1–2” or higher, as assessed by an approved rating agency. Second, the foreign issuer must have a very large bond market, with at least 100 trillion yen in bonds already issued.

New guidelines for banks and subsidiaries

The regulator also released updated supervisory guidelines for banks, insurance companies, and their subsidiaries. A newly added rule says that when a subsidiary offers cryptocurrency intermediation services, it must give customers clear and appropriate explanations about the risk involved.

The FSA said the measure is to prevent people from thinking a crypto product is safe just because it is offered by a well-known financial group.

For companies that want to handle stablecoins issued outside Japan, the draft rules add another requirement. Firms must explain that the foreign issuer will not issue, redeem, or actively promote stablecoins to everyday users in Japan. The FSA said it will also work with overseas regulators to share information about these stablecoins and their issuers.

Japan’s push for a regulated stablecoin market

The consultation is part of Japan’s attempt to build a regulated stablecoin environment. In October 2025, local fintech company JPYC launched what it described as Japan’s first legally recognized yen-backed stablecoin.

The country’s three major banks, MUFG, SMBC, and Mizuho, have also been testing stablecoins and tokenized deposits for payments and settlements, with formal backing from the FSA in December.

With the stablecoin market becoming a thing of interest in the country. Japan is pushing to protect customers by making sure banks and subsidiaries explain risks when offering crypto services. Limiting eligible reserve assets to high-quality foreign bonds reduces financial risk and ensures stability. The FSA said the rules will be finalized after the public comment period ends and will be enforced following the necessary legal steps.

Also Read: Japan May Allow Crypto ETFs by 2028 as Global Markets Move Ahead

Trump family-backed Bitcoin mining firm American Bitcoin Corp. (ABTC) expanded its Bitcoin reserves to roughly 5,843 BTC, according to a treasury update released this week. The move reflects a broader accumulation trend led by firms like Strategy Inc and includes purchases made through January 25, 2026, following the company’s most recent Bitcoin buy earlier this month.

In an X post on Wednesday, Eric Trump praised the company’s accumulation strategy, writing, “​​$ABTC is leading the charge, building America’s Bitcoin infrastructure faster than anyone.”

In 4 months and 22 days since our public debut on NASDAQ, American Bitcoin Corp (@ABTC) has sprinted past company after company:

30. DeFi Technologies — 2,452 BTC (passed September 2, 2025)

29. The Smarter Web Company PLC — 2,674 BTC (passed September 8, 2025)

28. Capital B —… pic.twitter.com/CHxT3eQ2T1

— Eric Trump (@EricTrump) January 27, 2026

ABTC treasury growth and BTC yield

American Bitcoin said its BTC yield reached about 116% since its Nasdaq debut. The figure is based on the company’s Satoshis Per Share metric, which shows how much Bitcoin backs each outstanding share.

As of late January, SPS climbed to 586 satoshis per share, up sharply from levels recorded at listing. The steady increase reflects a combination of direct Bitcoin purchases and operational gains rather than short-term trading activity.

Market reaction

Shares of American Bitcoin Corp. traded higher following the disclosure, rising 5.8% after reports of the January 25 reserve increase. The move extended a period of elevated volatility, as investors continue to price ABTC largely as a proxy for Bitcoin exposure.

Even after the recent pop, the shares are still far from past highs, underscoring how ABTC’s price moves tend to mirror crypto market sentiment more than classic stock fundamentals.

The same sharp jump happens every Monday when Strategy CEO Michael Saylor announces new BTC purchases. Yesterday, the notice seemed to drive prices 2.1% up.

The update follows American Bitcoin’s shift after its September 2025 Nasdaq listing, when it leaned fully into a Bitcoin treasury model and began judging progress by how much BTC backs each share, rather than by traditional operating metrics.

A smaller stack, a similar playbook

With roughly 5,843 BTC on its balance sheet, American Bitcoin now sits around 18th among public Bitcoin holders, according to BitcoinTreasuries. Its market cap hovers near $1 billion, putting it in the mid-cap tier of Bitcoin treasury companies. That scale is modest compared to the giants on the top 3 holders, but the strategy is familiar.

Just yesterday, Strategy Inc. added 2,932 BTC for about $264 million, pushing its total holdings to 712,647 BTC, or roughly 3.4% of Bitcoin’s fixed supply. Strategy’s approach is relentless and mechanical: constant capital recycling, steady equity issuance, and zero concern for short-term price moves.

American Bitcoin is playing the same game, just on a very different board. Where Strategy leverages massive access to capital markets, American Bitcoin is focused on incremental accumulation and growing Bitcoin per share as its core.

Also read: BlackRock Files for iShares Bitcoin Premium Income ETF

Digital asset firm Tether launched USA₮ today, a stablecoin regulated by the federal government and designed for the U.S. market. Issued through Anchorage Digital Bank, N.A., the token is the first to operate under the federal GENIUS Act framework established in July 2025.

As per the official announcement, the stablecoin aims to provide domestic institutions with a dollar-backed asset that meets strict national oversight standards while using established financial infrastructure like Cantor Fitzgerald for reserve custody.

Tether Announces the Launch of USA₮, the Federally Regulated, Dollar-Backed Stablecoin, Made in America 🇺🇲🚀

Read more: https://t.co/rIMQTQ7ipX

— Tether (@tether) January 27, 2026

Market availability and Infrastructure

This launch follows a preliminary design announcement made late last year, signaling a change in how stablecoins connect with the American banking system. USA₮ is now available to U.S. users via major platforms like Bybit, Crypto.com, Kraken, OKX, and Moonpay.

CEO Bo Hines, who previously served as the Executive Director of the White House Crypto Council, joined Tether in September and is leading the project. He said that the project focuses on stability and responsible governance to ensure American leadership in financial innovation.

Shift to federal oversight

While Tether’s global token, USD₮, is the most widely adopted stablecoin around the world, it has often operated outside the direct oversight of U.S. federal regulators. Meanwhile, USA₮ is designed to meet bank-grade compliance requirements and offers on-chain transparency through a nationally chartered bank.

Paolo Ardoino, CEO of Tether, noted that while USD₮ has shown the utility of digital dollars globally for over a decade, USA₮ extends that mission by providing a product specifically tailored to the American regulatory environment.

Global economic implications

The launch has wider implications for the future of the U.S. dollar in a digital-first global economy. As countries compete to shape the future of money, integrating a major stablecoin issuer into a federally recognized framework could set a new standard for trust and transparency.

Anchorage Digital Bank has developed infrastructure to manage large-scale transactions while maintaining integrated risk management, which may encourage more traditional financial entities to adopt blockchain-based settlements.

Legitimizing Tether’s role

USA₮ represents a fundamental rebranding for a company that has spent a decade navigating the American financial system. While Tether has been established with USDT, it did so by operating offshore, often drawing heavy scrutiny from U.S. regulators regarding its reserve transparency. In contrast, USA₮ is a calculated move toward transparency and federal legitimacy.

This approach is further solidified by the focus on “dollar innovation.” This launch places USA₮ under the direct supervision of the Office of the Comptroller of the Currency (OCC). It’s no longer just an offshore claim, but a bank-issued asset subject to the same compliance standards as traditional national banks.

The debut of USA₮ represents Tether’s effort to shift from being a global industry participant to a key player in the domestic regulated financial system. Although USA₮ is not legal tender and is not issued or guaranteed by the U.S. government, its compliance with the GENIUS Act serves as a foundation for the next generation of American commerce.

Also Read: Tether To Fund INHOPE For Fight Against Online Child Abuse

Clawdbot, an open-source AI assistant now rebranded as Moltbot, is facing a major security scare after its Founder, Peter Steinberger, revealed that crypto scammers hijacked his GitHub and X accounts. 

In a series of posts on X, Steinberger emphasized that he has never issued any tokens and that projects listing him as a coin owner are scams. He urged crypto enthusiasts to stop harassing him and clarified that he will not accept any token-related fees.

To all crypto folks:
Please stop pinging me, stop harassing me.
I will never do a coin.
Any project that lists me as coin owner is a SCAM.
No, I will not accept fees.
You are actively damanging the project.

— Peter Steinberger 🦞 (@steipete) January 27, 2026

Steinberger explained that a forced account renaming by Anthropic triggered the issue. He posted, “Crypto folks: I was forced to rename the account by Anthropic. Wasn’t my decision.” Scammers immediately squatted on his old accounts. 

Steinberger added, “Do I have anyone from GitHub in my timeline who could help me get my account on GitHub back? It was snatched by crypto scammers.” The founder also confirmed that the targeting came specifically from crypto communities, stating, “Because it’s only that community that harasses me on all channels and they were already waiting.”

Clawdbot security risks exposed

The founders’ posts come as blockchain security firm SlowMist recently warned about problems with Clawdbot. The firm found hundreds of Clawdbot API keys and private chat logs exposed online. Some accounts can be accessed without passwords, letting hackers steal information or take control. The risk comes from Clawdbot’s system that handles messages, tools, and sensitive account info.

Security Researcher Jamieson O’Reilly explained on X, “Something users (developers included) often don’t realise is, the entire IPv4 internet gets scanned continuously – by people on both sides of the security spectrum.” Some Clawdbot servers even run the agent as root, giving anyone who discovers them full system control. Reverse proxy setups can misinterpret external connections as local, allowing unauthorized access.

The Clawdbot craze has also spread into crypto. Fake Clawdbot tokens have seen wild price swings—one jumped nearly 129,000% in a single day—showing how hype can quickly attract scammers. 

Co-Founder of Voltagent Ozmen added, “This happens to nearly every OSS project. When it gains visibility, scammers create fake coins with the name, farm engagement, & run rugs.” He suggested that developers make it clear their projects are separate from scams and avoid getting unnecessarily involved.

Crypto scams worsen across platforms

The Clawdbot situation highlights a broader trend of targeting high-profile tech figures, similar to the recent phishing attack on South Korean prosecutors. Earlier this month, a prosecutor’s office in South Korea lost $48 million in Bitcoin after falling victim to a phishing scam. The officials accessed a phishing website while working on crypto assets that had been seized and stored their passwords on USB drives, which is not advisable. 

In another case, a crypto user lost over $500,000 in USDT after falling victim to an Ethereum address poisoning attack. The victim sent out a bulk transfer to an address that was very similar to the intended recipient. This shows that even experts can be victims of basic errors that cost them big.

Clawdbot’s stolen accounts and security gaps show how important it is for AI and crypto projects to stay safe. People should double-check if a project is real, keep their login info secure, and stay away from unverified coins or tokens.

Traders and investors are bracing for market movements as the Federal Reserve (Fed) prepares for its January 2026 Federal Open Market Committee (FOMC) meeting tomorrow. The market is closely watching whether the central bank will adjust interest rates, amid persistently high inflation and early signs of a cooling job market. 

The Fed, which has been cutting interest rates in recent meetings, now seems to be adopting a cautious stance, choosing to wait and see. The uncertainty is creating confusion among financial institutions, crypto traders, and even retail investors.

Currently, the Fed’s benchmark interest rate stands at 3.5%-3.75%. The central bank reduced rates by 75 basis points in the last three consecutive meetings, aiming to protect the labor market from rising unemployment. However, last month’s FOMC meeting showed many officials advocating a pause after repeated cuts. This signals that the Fed may maintain its current rates rather than push further easing or tightening.

Market sentiment and crypto implications

According to blockchain analytic platform Lookonchain, the market heavily prices in no change for the January 28 decision. Yet, a single wallet recently spent $23,000 betting on all three possible outcomes on Polymarket: a 25+ bps increase, a 25 bps decrease, or a 50+ bps decrease. If any outcome hits, the wallet could earn between $1.27 million and $5.64 million.

The market is pricing in no change for the Jan 28 #Fed decision.

Yet a newly created wallet spent $23K betting on all three extremes:

25+ bps increase
25 bps decrease
50+ bps decrease

It may seem unlikely — but if any one hits, the wallet stands to profit $1.27M+, $2.01M+, or… pic.twitter.com/DHFMxmLFEh

— Lookonchain (@lookonchain) January 27, 2026

Polymarket data confirms this, showing the trader holding active bets worth roughly $18,700. Despite the strong positioning for a rate increase, the account has posted nearly $3,000 in losses due to incorrect rate-cut predictions. This underscores the unpredictability in the market, even as consensus leans toward a hold.

The CME FedWatch Tool also shows this sentiment, showing a 97.2% probability that the Fed rates remain unchanged. Only a small minority, just under 3%, expect a cut to 3.25%-3.50%. No meaningful probability exists for a rate hike, suggesting the market broadly expects stability.

Expert views and historical context

Analyst Vlad Pivnev noted, “The FOMC meeting is coming soon. There’s a 99% chance there won’t be any changes. We’ve made a profit, so it’s time to open the next meeting.” He added that traders should monitor upcoming economic data to better gauge macro trends.

Chief US Economist Anna Wong analyzed historical FOMC patterns, particularly Kevin Warsh’s commentary during 2006–2011. She observed, “Even as inflation eased slightly, his remarks show a consistent worry that price pressures could re-emerge.” During the 2008 financial crisis, Warsh emphasized inflation risks despite surging unemployment, signaling how policymakers weigh long-term price stability against growth concerns.

If Trump wants someone easy on inflation, he got the wrong guy in Kevin Warsh.

Here we chart his inflation assessment during the FOMC meeting from 2006-2011 (along the unemployment rate, with core PCE inflation in the background).

One standout one:

April 2009 – 7 months after… pic.twitter.com/7cbpEKxJ1c

— Anna Wong (@AnnaEconomist) January 22, 2026

Crypto market reaction

The Fed’s decision could have a big impact on the crypto market. The total crypto market is around $2.98 trillion, slightly up 0.21% today. Still, major coins like Bitcoin, Ethereum, and XRP are losing value. BitMine CEO Tom Lee recently said that the drop is partly because investors are turning to gold and silver. The Fed’s rate decision could either help crypto prices steady or cause short-term swings.

The parabolic and continued surge in Gold and silver are overshadowing inherently strengthening fundamentals of crypto, particularly Ethereum $ETH and Bitcoin $BTC @Davos 2026 highlighted financial institutions are set to build on ethereum and smart blockchains

And when… https://t.co/qqCv7z4FXA

— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) January 26, 2026

Investors and traders expect the Fed to keep interest rates unchanged, though a small surprise is possible. The decision could affect borrowing costs, market behavior, and crypto prices.

Also Read: SEC–CFTC Crypto Harmonization Event Rescheduled to January 29

Open-source AI agent platform Clawdbot is currently facing security risks amid broader market trend. In the latest update on X, security firm SlowMist highlighted that hundreds of API keys and private chat logs from Clawdbot are exposed online. 

As per the post, some Clawdbot instances can be accessed by anyone without a password, which could let hackers steal login info or even run malicious commands. SlowMist recommends locking down any open ports so only trusted IP addresses can connect.

🚨SlowMist TI Alert🚨

Clawdbot gateway exposure identified: hundreds of API keys and private chat logs are at risk. Multiple unauthenticated instances are publicly accessible, and several code flaws may lead to credential theft and even remote code execution (RCE).

We strongly… https://t.co/j2ERoWPFnh

— SlowMist (@SlowMist_Team) January 27, 2026

The threat stems from how Clawdbot connects AI agents to messaging platforms and manages integrations. Clawdbot Control, the web-based admin interface, holds sensitive information such as conversation histories and API keys. 

As noted by hacker Jamieson O’Reilly on X, the exposure is similar to hiring a butler and leaving your front door wide open. Anyone can access private chats, API keys, and other credentials if the Control UI is improperly secured. 

Exposed gateways and misconfigurations

Clawdbot’s gateway handles message routing, tool execution, and credential management. However, O’Reilly discovered that some instances run with default settings that auto-approve localhost connections. 

Consequently, reverse proxy setups misinterpret external connections as local, allowing unauthenticated access. Some servers run the agent as root, granting full system control to anyone who finds the gateway online.

The vulnerabilities of Clawdbot can be easily found by using online tools like Shodan or Censys. Simply searching for “Clawdbot Control” results in hundreds of exposed instances within seconds. 

“Something users (developers included) often don’t realise is, the entire IPv4 internet gets scanned continuously – by people on both sides of the security spectrum,” O’Reilly said. 

He noted that many of these contain chat logs, API keys, as well as login credentials for Telegram, Slack, Signal, and other services, making it easy for hackers to pretend to be users, steal their information, or control what they see. 

Operational risks and real-world impact

The hacker himself ironically emphasized that Clawdbot agents are independent and can send messages, perform commands, and change their responses without anyone observing. This makes them susceptible to hacking, where a hacker could pretend to be you or alter your digital interactions. 

O’Reilly pointed out the risks associated with AI agents. In one case, there was an exposure of signal integrations, where the device pairing file was publicly accessible. This meant that the encryption could be bypassed. In another case, the server was executing commands and had full system access, exposing sensitive files and settings. 

Crypto market buzz: Clawdbot tokens

The Clawdbot craze has spilt over into crypto. Several Clawdbot copycat tokens have seen huge short-term jumps. One token rose nearly 129,000% in a day, while another shot up 4,778% over 24 hours. 

These copycat tokens are examples of the hype and meme effect that creates a great deal of excitement in the market. While the project itself, Clawdbot, is all about innovation in AI, the rush to invest in these tokens is all about the potential gains that these projects might bring.

Also Read: Kraken Brings DeFi Yield In-App With Morpho-Powered Earn

Digital asset manager Bitwise has taken its first direct step into decentralized finance (DeFi) by launching non-custodial on-chain vaults in partnership with lending protocol Morpho. 

The firm confirmed the launch on January 26, and it was a change of direction in its traditional emphasis on exchange-traded products and research targeting institutional investors. 

A shift beyond ETFs and traditional crypto products

The new product allows users to earn yield on stablecoins while retaining full control of their funds. Instead of transferring custody, investors deposit assets into an onchain vault that is managed through smart contracts. Bitwise curates the strategy and oversees risk, but all execution happens transparently on-chain. 

According to Bitwise, the first vault focuses on stablecoins and deploys capital into overcollateralized lending markets on Morpho. The strategy currently targets returns of up to 6% annually, though actual yields may vary depending on market conditions.

“Finance is moving onchain. Vaults are a key part of that, offering investors a transparent way to earn digital yield on their assets,” Bitwise said in a post on X announcing the launch.

Finance is moving onchain. Vaults are a key part of that, offering investors a transparent way to earn digital yield on their assets.

Today, we’re excited to announce that Bitwise is launching non-custodial vault strategies as a curator on @Morpho.

The quick details:

-… pic.twitter.com/pUz9Upk4lV

— Bitwise (@BitwiseInvest) January 26, 2026

How the vault works and why it matters

The vault allocates deposited funds to lending pools where borrowers provide excess collateral, reducing counterparty risk compared to unsecured lending models. All positions remain visible on-chain, and users can withdraw funds at any time, unlike some staking or locked-yield products.

Strategy design and real-time risk oversight are led by Jonathan Man, CFA, Bitwise’s Portfolio Manager and Head of Multi-Strategy Solutions. The firm said the vault leverages infrastructure and risk frameworks it has developed over several years managing crypto investment products.

“Decentralized finance, or DeFi, offers compelling yield opportunities, but the complexity of managing onchain risk has kept many investors on the sidelines,” Man said. “Bitwise provides value-add by layering professional guidance and  risk management experience onto these non-custodial tools.”

The move comes as asset managers increasingly explore blockchain-based financial infrastructure rather than relying solely on regulated wrappers such as ETFs. While Bitwise has been best known for serving traditional investors, the Morpho vault signals a broader industry trend toward treating DeFi as core financial infrastructure.

Morpho’s growing institutional footprint

Morpho has become a prominent platform of curated lending strategies, where professional managers can create custom vaults with standardized smart contracts. The protocol is now the seventh-largest DeFi platform by total value locked (TVL), having a fund of approximately $6.7 billion, as per DeFiLlama. 

The platform’s growth accelerated in late 2025 following partnerships with Coinbase, Crypto.com, and Société Générale’s digital asset unit SG-FORGE. Earlier this week, Morpho also announced that curated vaults from Sentora had been integrated into Kraken’s DeFi Earn program. 

Kraken's DeFi Earn has integrated @SentoraHQ curated vaults that allocate to Morpho.

DeFi Earn connects users to the best onchain yield opportunities, all within @krakenfx. pic.twitter.com/dbY3wCp8qL

— Morpho 🦋 (@Morpho) January 26, 2026

“Bitwise joining Morpho as a vault curator highlights growing institutional demand for allocating capital onchain through noncustodial infrastructure,” Morpho Co-Founder and CEO Paul Frambot said.

What comes next for Bitwise’s DeFi strategy

Bitwise has not disclosed performance data or timelines for expanding its vault offerings. However, the firm previously predicted that on-chain vaults, often described as “ETFs 2.0” could double assets under management in 2026. 

The Morpho launch appears to be an early step in that longer-term strategy, as traditional asset managers cautiously deepen their involvement in decentralized finance.

Also Read: Bitwise Launches BPRO: The First Actively Managed ETF Combining BTC & Gold