BitGo Holdings Inc. (NYSE: BTGO) plans to expand institutional access to decentralized finance through a new vault platform that will let eligible clients participate in third-party onchain lending strategies while maintaining institutional custody controls.
Announced on Monday, the new DeFi vault offering will provide institutional investors with access to third-party vaults and predefined onchain lending strategies through a network of infrastructure providers and independent risk managers. Consequently, BitGo hopes to make decentralized finance more accessible to institutions that require strict security, compliance and operational oversight.
The initiative will initially launch with decentralized lending protocol Morpho and aims to bridge the gap between traditional institutional asset management and blockchain-based financial markets.
Decentralized finance, commonly known as DeFi, allows users to lend, borrow and earn returns on digital assets through blockchain-based protocols instead of traditional financial institutions. However, many institutional investors have remained cautious because of custody, governance and risk management concerns.
BitGo said independent risk managers will establish each vault’s investment strategy, risk limits and maximum exposure levels. Meanwhile, infrastructure providers such as Morpho will supply the technology that executes lending transactions and manages the underlying blockchain infrastructure.
Morpho operates decentralized lending markets that connect borrowers and lenders directly on public blockchains. The protocol enables users to earn returns by supplying digital assets while borrowers access liquidity without relying on centralized intermediaries.
The vaults will integrate with BitGo Bank & Trust, the company’s Office of the Comptroller of the Currency-chartered national trust bank. Additionally, clients will be able to manage vault participation through BitGo’s existing institutional custody platform.
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BitGo will retain custody of the vault
The custody model separates asset safekeeping from investment execution. When clients transfer assets into a third-party vault, those assets leave BitGo Bank & Trust’s custody environment and enter the external protocol.
However, BitGo Bank & Trust will retain custody of the vault receipt token representing the client’s ownership claim. The company said this structure provides institutional investors with greater transparency and operational control. It also clearly separates custody, protocol infrastructure and risk management responsibilities.
Chief executive officer and co-founder Mike Belshe said institutional investors increasingly want exposure to blockchain-based financial opportunities without sacrificing the security standards expected from professional custodians. He said BitGo designed the new vault offering by combining specialized infrastructure providers such as Morpho with independent risk managers to create a more accessible institutional experience.
BitGo said the offering expands its broader strategy of helping clients generate returns from digital assets through third-party blockchain protocols. Earlier, the company announced an integration with Blueprint Finance’s Concrete protocol. This will enable clients to access certain third-party onchain opportunities while keeping eligible assets in qualified custody.
The new Morpho model differs because client assets move into third-party vault infrastructure rather than remaining inside BitGo’s custody environment. Instead, BitGo Bank & Trust will safeguard the vault receipt tokens that represent customer ownership interests.
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Company intends to add more infrastructure providers
Additionally, BitGo emphasized that any rewards or investment returns would come from the activity of independent third-party protocols rather than from BitGo or BitGo Bank & Trust.
The company also plans to expand the platform by adding more infrastructure providers, protocol integrations and independent risk managers. Consequently, eligible institutional clients could gain access to a broader range of decentralized finance opportunities through a single platform designed to meet institutional operational and compliance requirements.
BitGo said integrating multiple third-party vaults into one institutional interface is intended to simplify access to blockchain-based lending markets. It will also help maintain the governance, monitoring and reporting capabilities expected by professional investors.
