The interest from institutions in earning returns on their bitcoin holdings is gaining momentum, prompting finance platform Mezo to introduce a new solution for generating returns from what has traditionally been a passive investment. Mezo Prime has unveiled segregated vaults, known as Enclaves, which enable institutions to earn yield on bitcoin held in custody with Anchorage Digital Bank, as announced on Wednesday. This development reflects a changing perception of bitcoin among institutions, which are now exploring ways to leverage it as a capital-generating asset rather than merely a store of value. The emergence of bitcoin-native yield infrastructure, such as projects like Rootstock and Babylon, has driven this shift by enabling BTC to be utilized in lending, collateralized borrowing, and other financial strategies within the Bitcoin ecosystem.
Mezo's Enclaves are designed to address institutional concerns around asset segregation, reporting, and risk controls, which have historically limited participation in crypto lending and decentralized finance. The project has received 250 BTC in funding from Bullish, a digital-asset firm and parent company of CoinDesk, which is also among the first users of the product. By depositing bitcoin into these vaults, institutions can earn protocol fees or use it as collateral to borrow MUSD, a bitcoin-backed stablecoin, without the risk of rehypothecation. Although institutional adoption of these products is still in its early stages and yields are relatively low compared to other crypto assets, initiatives like Mezo demonstrate a growing trend towards treating bitcoin as a productive financial asset rather than just a digital equivalent of gold.