The interest of institutional investors in generating returns on their bitcoin holdings is gaining momentum, prompting financial platform Mezo to introduce a solution for passive bitcoin assets. Mezo Prime is rolling out segregated vaults, known as Enclaves, which enable institutions to earn yields on bitcoin held in custody with Anchorage Digital Bank. This development reflects a change in the way institutions perceive bitcoin, 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 allowing BTC to be utilized in lending 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. With 250 BTC in funding from Bullish, Mezo's project is also being used by Bullish, which has deployed part of its treasury into 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.
Although institutional adoption of such products is still in its early stages and yields are relatively low, projects like Mezo demonstrate a growing trend of treating bitcoin as a productive financial asset, rather than just a digital equivalent of gold.