BitGo, the digital asset infrastructure company, has collaborated with Morpho to develop a decentralised finance vault offering.
The new development is set to expand institutional access to certain third-party DeFi vault products and on-chain lending-related opportunities through a network of specialised partners.
Independent risk managers will set the vault’s strategy parameters, risk parameters and maximum exposure limits while infrastructure providers, such as Morpho, will provide the underlying vault architecture, lending infrastructure and on-chain execution systems that power strategy execution.
BitGo’s OCC-chartered national trust bank, BitGo Bank & Trust, is expected to handle vault participation and custody of vault receipt tokens.
“We believe institutions are looking for ways to access on-chain opportunities but also expect the security and oversight that come with institutional custody,” said Mike Belshe, CEO and co-founder of BitGo. “This means partnering with the right infrastructure providers, like Morpho, and risk managers. BitGo’s DeFi vaults bring these pieces together in a way that makes access to certain on-chain opportunities that align with their goals more accessible to our clients.”
Paul Frambot, CEO and co-founder of Morpho, added: “BitGo is one of the most trusted names in institutional digital asset custody, and this integration is intended to connect eligible BitGo clients to Morpho-enabled vault infrastructure through BitGo’s platform.
“Through Morpho’s credit network, institutions can access third-party on-chain lending markets through infrastructure that can be accessed using BitGo’s institutional workflows. This is made possible through Morpho’s composable architecture, designed to be embedded directly into the existing workflows institutions already trust and use.”
BitGo recently launched its Crypto-as-a-Service (CaaS) infrastructure, designed to support firms transitioning from national crypto registration regimes to the EU’s Markets in Crypto-Assets Regulation (MiCAR).
The planned Morpho vault offering is expected to support a model in which client assets are deployed through third-party vault infrastructure and BitGo Bank & Trust supports the custody of the corresponding vault receipt token or similar customer entitlement record.
Over time, BitGo expects to expand the offering with additional providers, protocol integrations and risk managers, giving eligible clients access to opportunities made available by independent third parties and su
