The interest from institutions to generate returns on their bitcoin holdings is increasing, and financial platform Mezo has announced its entry into this space with a new offering. Mezo Prime is introducing segregated vaults, known as Enclaves, which enable institutions to earn yields on bitcoin held in custody with Anchorage Digital Bank.
This development signifies a change in how institutions perceive bitcoin, moving beyond its traditional role as a store of value to a capital that can produce immediate returns. The emergence of bitcoin-native yield infrastructure has driven this shift, with projects like Rootstock and Babylon developing mechanisms for lending, collateralized borrowing, and other financial strategies within the Bitcoin ecosystem. Mezo's Enclaves are designed to meet institutional requirements for asset segregation, reporting, and risk controls, addressing historical limitations in crypto lending and decentralized finance.
The project has received 250 BTC in funding from Bullish, which is also among the first users, allocating part of its treasury to the product while maintaining its existing custody framework. Bitcoin in the vaults can be locked to earn protocol fees or used as collateral to borrow MUSD, a bitcoin-backed stablecoin, without rehypothecation.
While institutional adoption and yields are still in the early stages and relatively low, projects like Mezo demonstrate a growing trend of treating bitcoin as a productive financial asset, beyond its comparison to gold.