Bitwise and Sentora Build Lending Vaults Around Payment Financing (MC 9/3)

Welcome to another edition of the Money Code newsletter (fka The Weekly Stable), the essential source of stablecoin news coverage for global fintech professionals, brought to you by This Week in Fintech and Stablecon.

This week we cover:

Bitwise creates a second layer of secured financing against tokenized private credit
Sentora brings PYUSD lending to Huma's payment-financing market
Product launches, partnerships and funding news from Felix, tZERO, Plenti, Ajaib, Goldman Sachs, Bank of America, Circle, CIMB, KAST, Securitize and more.

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🏆 Top Stories

Bitwise and Sentora Build Lending Vaults Around Payment Financing

Bitwise launched PAPY on Morpho, a vault where depositors supply AUSD and borrowers pledge tokenized credit assets across three markets: Huma’s PST for cross-border payment financing, sUSDai for GPU-backed loans, and Hastra PRIME for home-equity credit.

PAPY is not originating those underlying loans. It creates a second layer of secured financing against them. Bitwise selects the eligible collateral and sets the loan-to-value limits and encoded allocation logic. The launch targets a variable yield of 5% to 6%.

The interesting part is the layer Bitwise adds. Putting credit onchain does not remove the need for someone credible to assess the collateral, define the risk and give institutions confidence in the structure. Bitwise brings an established asset-management brand and a documented institutional credit-assessment process to that job.

Commissioner Hester Peirce recently warned that vaults can raise securities and investment-adviser questions depending on how they work. That is also where the tension sits: execution is automated within encoded limits, but Bitwise can change risk parameters, constrain allocations and pause deposits. Its RIA registration belongs to a separate advisory business, so PAPY users do not receive an adviser-client relationship, fiduciary protection or a Bitwise balance-sheet guarantee.

Sentora’s new Huma vault makes the connection clearer. Depositors supply PYUSD into a Morpho market where Huma’s PST is the collateral. PST represents credit lines to licensed cross-border payment institutions, typically lasting one to seven days. At launch, Huma reported that PST supply across chains had passed $225 million. Sentora sets conservative loan-to-value limits and exposure caps around that credit.

Huma sits underneath both stories. Cross-border payment companies still face timing gaps as money moves between fiat systems and stablecoin rails, so they use short-term financing to keep settlement moving. Through PST, that payment-financing exposure becomes accessible to onchain lenders. Bitwise and Sentora give stablecoin holders structured ways to lend against it, each with a different deposit asset and risk design.

It’s a little poetic: stablecoins in cross-border payments creates a financing gap that is itself funded by onchain capital, and now those assets themselves can be used as collateral, increasing their utility and hopefully expanding the capital pool available for the underlying origination.

This is a good example of what’s possible through composability of onchain finance. We’re still very early.

Read on for a round up of this week's news:

📊 Market Trends

Robinhood Chain becomes crypto's top chain by organic revenue (read more)

💸 Fundraises and M&A

Money-transfer startup Felix raises $200 million in a Series C led by a16z (read more) (See our latest episode with Felix here)
ICE, owner of the NYSE, invests in tZERO for its tokenized-securities push (read more)
Plenti raises $3 million seed round led by Tether to expand across Latin America (read more)
SBI acquires a 20% stake in Indonesia's Ajaib for $270 million to expand yen stablecoin use in Southeast Asia (read more)

🚀 Product Announcements & Partnerships

Bitwise launches PAPY Premium RWA Vault on Morpho to bring tokenized TradFi credit onchain (read more)
Bridge integrates orchestration with Privy to enable global fiat rails across more than 160 million wallets (read more)
Bullish commits a $100 million stablecoin liquidity facility to USD.AI for AI compute and GPU debt (read more)
CIMB settles $342 million tokenized sukuk using tokenized deposits in a Malaysian first (read more)
Circle partners with Chelsea FC to place USDC on the front of shirts for the 2026/27 season (read more)
Circle and OKX partner to expand USDC liquidity across spot, margin and futures trading (read more)
Dunamu and Visa partner on stablecoin and AI services, with Open Standard's OUSD under consideration (read more)
Ethena unveils EthenaPay (read more)
GalaxyOne launches a crypto portfolio line of credit powered by Paxos infrastructure (read more)
Goldman Sachs, Bank of America and others plan to issue a dollar stablecoin together in 2027 (read more)
Korea Exchange's Koscom signs 12 securities firms to tokenization platform KoSTO (read more)
MoonPay integrates PayBox into xAI's Grok for conversational Solana and Web3 payments (read more)
Payward and the London Stock Exchange partner to modernize UK equity markets (read more)
Sberbank plans to add ether and USDT as collateral for crypto-backed loans (read more)
Securitize and Socios team up to tokenize equity in professional sports teams (read more)
Sentora launches the first dedicated PST vault on Morpho with PYUSD deposits (read more)
Stablecoin-powered KAST launches a 24/7 business platform for global companies (read more)
UAE-licensed Zand partners with Circle to expand USDC and dirham stablecoin rails (read more)

⚖️ Regulatory Developments

BIS flags group-level risks in stablecoin regulatory frameworks (read more)
UK plans a new Bank of England objective for stablecoins (read more)
SEC proposes a broad update to transfer-agent rules with provisions for onchain markets (read more)
Singapore proposes a stablecoin license with 100% reserves and no holder interest (read more)