Bitwise Expands PAPY RWA Vault to Arc Blockchain with USDC Deposits
Bitwise Asset Management has expanded its Bitwise Premium Real-World Assets (RWA) Vault, known as PAPY-USDC, onto the Arc blockchain. This vault allows users to deposit USDC and earn yield by lending against overcollateralized tokenized real-world assets with a target APY of 5–6%. The expansion follows the successful launch of the inaugural PAPY-AUSD vault on Ethereum two weeks prior, which has already attracted more than $20 million in deposits. Bitwise curates acceptable collateral and loan parameters without taking custody or exercising discretionary control over user funds. The accepted collateral includes Huma Finance's PST for short-term cross-border payments and USDai backed by GPU-powered AI infrastructure with additional insurance from Munich Re. Excess liquidity is also allocated to cirBTC-backed lending markets, enhancing the vault’s yield potential. USDC deposits are fully backed by cash and U.S. Treasuries held in regulated institutions. Arc was chosen for its institutional-grade validator set, stablecoin-native settlement capabilities, and sub-second finality—making it ideal for real-world asset-backed credit strategies.
Tickers: $USDC
Topics: crypto decentralized finance RWA (Real-World Assets) USDC vaults