BitGo to Offer Institutional DeFi Vaults, Morpho First Partner
US-based BitGo, a crypto custody and infrastructure provider, unveiled plans for a decentralized finance (DeFi) vault product with Paris-based Morpho as its first partner, to meet institutional demand for access to onchain lending and yield strategies while providing regulated custody and oversight. When clients deposit into the vault, their funds are deployed to a third-party onchain strategy, a 22 Jun statement said. BitGo Bank s national trust bank chartered by the US Office of the Comptroller of the Currency (OCC), holds a receipt token recording each clients claim. External infrastructure providers and independent risk managers will execute the strategies and set the risk parameters, with BitGo serving as the custodian of record. Morpho Labs, which develops the protocol, will provide the underlying vault architecture, lending infrastructure and onchain execution systems that tap into increasing institutional interest in yield and lending opportunities onchain. Custody layer addresses concerns However, institutions have held back from DeFi amid worries about regulatory compliance with custody and asset controls. The new service adds a custody layer to users assets to address those concerns. “We believe institutions are looking for ways to access onchain opportunities but also expect the security and oversight that come with institutional custody,” said Mike Belshe, CEO and









