BitGo Holdings, Inc. (NYSE: BTGO) announced plans to offer institutional clients access to decentralized finance (DeFi) vault products through a partnership with Morpho, an onchain lending infrastructure protocol.

The planned vault offering would allow eligible institutional clients to access third-party onchain vault strategies through a network of independent risk managers and infrastructure providers. Risk managers would set strategy parameters, risk parameters, and maximum exposure limits, while Morpho would provide the underlying vault architecture and lending infrastructure.

Vault participation and custody of vault receipt tokens is expected to be integrated with BitGo Bank & Trust, National Association, BitGo's OCC-chartered national trust bank. When client assets are transferred to a third-party vault, those assets are expected to be deployed outside BitGo Bank & Trust's custody environment, while the bank would support custody of the corresponding vault receipt token.

"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 co-founder of BitGo.

Paul Frambot, CEO and co-founder of Morpho, said the integration is intended to connect eligible BitGo clients to Morpho-enabled vault infrastructure through BitGo's platform.

The announcement notes that any rewards or returns would be generated by third-party vault and protocol activity rather than by BitGo or BitGo Bank & Trust. The company said it expects to expand the offering over time with additional providers, protocol integrations, and risk managers.

The planned Morpho vault offering follows a previously announced integration with Blueprint Finance's Concrete protocol, which is designed to enable clients to access certain third-party onchain protocols while assets remain in qualified custody. According to a press release from BitGo, no launch date was specified for the Morpho vault offering.