Chaince Digital Holdings Inc. (NASDAQ: CD) announced the launch of its USDC Yield vault on the Morpho lending protocol, developed in collaboration with AlphaPing GmbH, a Swiss-based on-chain credit curator.

The vault operates on Morpho, a decentralized lending protocol, and provides depositors exposure to on-chain lending strategies that require borrowers to post collateral exceeding borrowed amounts. Yield generation comes primarily from borrower interest and protocol activity.

The investment strategy draws returns from three categories: structured credit, delta-neutral yield strategies, and tokenized fixed income. AlphaPing serves as the vault curator, while Chaince Research LLC, a wholly-owned subsidiary of Chaince Digital, acts as consultant providing advisory services including collateral asset selection and risk management guidance.

"The launch of the Chaince USDC Yield vault reflects our view that blockchain-based financial infrastructure can support more transparent and verifiable capital markets activity," said Peter Yang, Head of Digital Assets at Chaince Digital.

Gabriel Weide, Founder of AlphaPing, stated that the company's "mandate as curator is grounded in a straightforward principle: yield should not be offered without a credible, independently maintained risk framework."

The vault targets sophisticated participants familiar with digital assets and decentralized finance. The company disclosed substantial risks including smart contract vulnerabilities, digital asset volatility, liquidity constraints, counterparty exposure, and potential asset loss.

Chaince Digital does not guarantee performance, yield, principal protection, or liquidity. The company cautioned that historical or targeted returns do not indicate future results.

Chaince Digital, formerly Mercurity Fintech Holding Inc., operates as a digital asset infrastructure and financial services platform. The company operates through subsidiaries including Chaince Securities LLC, a FINRA-registered broker-dealer.