Whitelisted and sole-depositor vaults: providers compared

Most major vault platforms can restrict who deposits. They differ in what else the whitelist checks. If redemptions and share transfers are gated too, the receipt token is harder to use elsewhere, and a custodian has extra work before it can hold it.

A whitelisted vault only accepts deposits from wallet addresses on an approved list, and a sole-depositor vault is the narrowest version, with one approved address. Upshift, Midas, Morpho, Lagoon, Mellow, Maple, Veda, Superstate, Ondo, Securitize and Centrifuge all support some form of depositor whitelist. They differ in which actions the list checks: deposits only, deposits and redemptions, or every transfer of the share token as well.

For an allocator the gap shows up in collateral and custody. A share token that moves freely can be posted as collateral or held at a custodian after a single listing, while a transfer-restricted token needs every receiving address approved first, including the custodian's. Provider details here were checked against each provider's docs on 25 September 2026, and Upshift is one of the providers compared.

What a vault whitelist can check

A vault can check an address at four points. Morpho's documentation on gates lays them out most clearly. Most providers gate one or two of these, and a few gate all four.

KYC and an onchain whitelist are separate steps. KYC is an offchain decision about a person or entity, and the whitelist is the contract-level record that enforces it. Midas lists wallet whitelisting as its own step "before you can interact with the smart contracts" for that reason. A KYC check on a website alone leaves the contract callable by anyone who goes around the website.

Which providers gate deposits, redemptions and transfers

The providers fall into three designs. Upshift, Midas and Lagoon in whitelist mode gate entry and leave the share token free to move, which means a holder can post it as collateral or transfer it without anyone approving the recipient. Maple's institutional pools, Superstate, Ondo's OUSG and Securitize's default setup gate entry and every transfer. That keeps the token inside an approved set of holders, at some cost to composability. Morpho, Veda, Mellow and Centrifuge leave the choice to whoever configures the vault.

Which providers offer sole-depositor vaults

A sole-depositor vault is a whitelist of one. It's deployed for a single allocator, and the capital sits apart from every other depositor's. Upshift runs private vaults of this kind (they appear on the Upshift app for transparency and accept deposits only from approved addresses). On Morpho Vault V2 the same result is mechanically possible with a deposit gate that allows a single address. The other providers above don't document a dedicated single-depositor product.

Allocators usually ask for one because of segregation. A dedicated vault keeps its assets, its risk and its accounting separate from other depositors'. Our piece on segregated vs co-mingled vault accounts covers when a regulated allocator needs that structure and what it costs in liquidity. Who does what in an onchain vault sets out the roles involved.

How a custodian gets a vault receipt token supported

Holding a vault position at a qualified custodian takes up to two steps. First, the custodian lists the receipt token so it can see, store and move the balance. Second, if the token or the deposit path is gated, the vault adds the custodian's wallet to its whitelist. A freely transferable ERC-20 receipt token only needs the first step, and a transfer-restricted token needs both, because a transfer to an address off the list reverts.

Upshift's integration with Kraken Institutional runs both steps. Eligible clients allocate from their Kraken qualified custody account into permissioned vaults, and the receipt token comes back to the client's segregated custody account, where the statement shows it at its redeemable underlying value.

The custodian step is often the longest part of bringing an allocator into institutional DeFi. Allocators usually start it in parallel with the vault's legal documentation. A standard ERC-20 receipt token clears the lowest bar at each custodian above.

What happens when an address is removed from the list

An allocator should know what a delisting does to its exit before it deposits. On Upshift the whitelist is checked against the address calling the vault, on deposits and on every redemption route. A removed address can't redeem directly until it's added back, though the position can still be transferred to an approved address that redeems it, because the share token moves freely. Morpho's documentation warns that a gate on sending shares "can lock users out of exiting the vault", and its gate changes run through a timelock for that reason. Lagoon checks the list on redemption requests as well as deposits, and Midas can pause an mToken for specific users.

Before depositing, find out who can change the list, whether a change waits behind a timelock, and whether a removed holder keeps a route out. Whitelists sit next to other vault risk controls, such as caps, timelocks and pause rights. Always make sure to do your own research and be aware of the above and any other risks before depositing.

Why regulated allocators ask for whitelisting

Whitelisting and segregation requests usually trace back to a few rules and supervisory expectations. Each summary cites its source. None of it is legal advice.

• Sanctions screening. OFAC's October 2021 guidance for the virtual currency industry recommends screening wallet addresses against sanctions lists, as summarised by White & Case.
• EU transfer rules. Regulation (EU) 2023/1113, applying from 30 December 2024, requires a provider to verify that its client owns or controls a self-hosted address for transfers above EUR 1,000.
• Custody segregation under MiCA. Article 75 of MiCA requires crypto-asset service providers to keep client assets legally and operationally segregated from their own.
• US adviser custody. An SEC staff no-action letter of 30 September 2025 addressed when advisers may treat certain state trust companies as qualified custodians for crypto assets, as summarised by Morrison Foerster.

What to ask a vault provider

1. Which actions does the whitelist check? Deposits only, redemptions too, or every share transfer.
2. Is it enforced in the contract? A check on the website alone can be bypassed.
3. Who controls the list, and is a change timelocked? The answer tells an allocator who could remove it and how much notice it would get.
4. Can the receipt token move freely? This decides composability and how many steps the custodian needs.
5. Is a dedicated, single-depositor vault available? Segregation and a whitelist of one are different products from a shared permissioned vault.

Frequently asked questions

What is a whitelisted vault in DeFi?

A whitelisted vault only accepts deposits from wallet addresses on an approved list, usually after the depositor has passed KYC. With some providers the same list also controls redemptions and transfers of the vault's share token.

What is a sole-depositor vault?

A sole-depositor vault is deployed for a single allocator and accepts deposits from one approved address. Its assets and accounting stay separate from other depositors'. Upshift runs private vaults of this kind, and Morpho Vault V2 can be configured the same way with a single-address deposit gate.

Can a whitelisted vault token be used in DeFi?

Yes, if the share token moves freely. Tokens from Upshift, Midas and Lagoon in whitelist mode move freely once minted and can be used in other protocols. Tokens restricted to allowlisted holders, such as Superstate's, can only enter a protocol whose contract address the issuer approves.

Does KYC make a vault permissioned?

Only if the result is enforced onchain. KYC is an offchain identity check, and a vault is permissioned when its contract rejects addresses that aren't on the approved list.

How does a custodian support a new vault receipt token?

The custodian lists the token's contract so it can hold and move the balance. If the token is transfer-restricted, the vault must also whitelist the custodian's wallet. Fireblocks lets clients list an ERC-20 themselves, while BitGo, Anchorage and Coinbase Prime run a review with no published timeline.

What happens if my address is removed from a vault whitelist?

On Upshift a removed address can't deposit or redeem directly until it's re-added, though the freely transferable share token can move to an approved address. Morpho timelocks gate changes and warns that a gate on sending shares can block exits.

Keep reading

• Segregated vs co-mingled vault accounts: when a regulated allocator needs its own vault.
• Who does what in an onchain vault: owner, operator, curator and depositor roles.
• Onchain yield in qualified custody: holding vault positions at a custodian.
• How Upshift, Mellow and Lagoon compare: custody, manager controls and exits across three platforms.