Bitwise’s Premium RWA Vault, ticker PAPY, attracted more than $8 million in deposits within its first day, rising from a launch balance of $639,000. The vault went live on September 2 on the Morpho lending protocol on Ethereum, and deposits reached $8.022 million in AUSD by September 3. Its instantaneous net APY was 5.22%, within the stated 5% to 6% target range. PAPY is a non-custodial vault (a strategy managed without taking users’ assets) that allocates AUSD to overcollateralized tokenized real-world assets. The portfolio held 46.59% in Huma Finance’s PST, 29.23% in Hastra PRIME and 24.18% in sUSDai. AUSD, Agora’s USD-pegged stablecoin, is backed by short-term U.S. Treasuries and liquid assets, with reserves managed by VanEck and custodied at State Street. Bitwise sets the eligible collateral, loan-to-value ratios and interest-rate configurations. The vault charges a 0.39% management fee, has no performance fee and can hold approximately $1 billion. Bitwise manages $9 billion in client assets and announced non-custodial vault curation on Morpho in January. Its targeted returns are based on real credit flows rather than token emissions or speculative leverage. PAPY competes for on-chain yield capital with BlackRock’s BUIDL fund, Franklin Templeton’s on-chain money market fund and Ondo Finance’s tokenized Treasury products. The vault’s overcollateralization requirement requires borrowers to post more collateral than they receive, limiting potential losses if a borrower defaults.