The trend of institutions seeking to generate returns on their bitcoin holdings is gaining momentum, prompting finance platform Mezo to launch a solution for passive asset holders. Mezo Prime has introduced segregated vaults, known as Enclaves, which enable institutions to earn yield on bitcoin held in custody with Anchorage Digital Bank. This development reflects a change in how institutions perceive the largest cryptocurrency, transitioning from a store of value to a capital-generating asset. The emergence of bitcoin-native yield infrastructure, such as Rootstock and Babylon, has driven this shift by facilitating lending, collateralized borrowing, and other financial strategies within the Bitcoin ecosystem.
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. Backed by 250 BTC ($19.4 million) in funding from Bullish, the project allows bitcoin to be locked to earn protocol fees or used as collateral to borrow MUSD, a bitcoin-backed stablecoin, without being rehypothecated. While institutional adoption of these products is still in its early stages and yields are relatively low compared to other crypto assets, Mezo's initiative demonstrates a growing recognition of bitcoin as a productive financial asset beyond its role as a digital equivalent to gold.