Vaults is a lending product that relies on a non-custodial (embedded) wallet. When you activate it, you lend your USDC or MXNB to borrowers through the Morpho protocol and earn variable yield in return.

This works differently from a bank account or a fixed-rate product: no regulated institution holds your funds, you control your funds at all times, and your return depends on the protocol's rules, not on a fixed promise from Bitso. As a result, your USDC or MXNB sits in a smart contract, not in Bitso's custody, so Bitso doesn't hold your money while it's in Vaults.

What is Morpho?

Morpho is the lending protocol that powers Vaults. It's an open protocol that connects people who lend crypto with people who borrow it, using smart contracts to automate the rules of that relationship. That's why Bitso doesn't operate, own, or control the Morpho protocol.

What is the Morpho Vault?

The Morpho Vault is the lending pool inside the Morpho protocol that holds your USDC or MXNB. The vault used for this product is curated by Gauntlet, a company specialized in protocol risk management, which is why Gauntlet decides how the pooled funds are allocated and sets the vault's risk limits. Bitso doesn't set or control these parameters.

What is the non-custodial (embedded) wallet?

It's a non-custodial (embedded) wallet, created automatically under your name the first time you activate Vaults. Because it's non-custodial, it lets you control your own funds, on top of letting you operate with the Morpho protocol.

As long as this wallet stays linked to your Bitso account, you don't need to manage it, handle keys, or keep recovery phrases. It keeps showing in the app even after you transfer your full balance back to Bitso, with a zero balance.