The trend of institutions seeking to generate returns on their bitcoin holdings is gaining momentum, with financial platform Mezo announcing its entry into the market with a product designed to help institutions earn yield on their bitcoin assets. Mezo Prime is introducing a new feature called Enclaves, which are segregated vaults that enable institutions to earn yield on bitcoin held in custody with Anchorage Digital Bank.
This development reflects a change in how institutions perceive bitcoin, transitioning from a passive store of value to a capital source 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 using BTC 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, which is also among the first users of the product.
Bitcoin deposited into the vaults can be locked to earn protocol fees or used as collateral to borrow a bitcoin-backed stablecoin without being rehypothecated. While institutional adoption of such products is still in its early stages and yields are relatively low compared to other crypto assets, initiatives like Mezo demonstrate a growing trend of institutions treating bitcoin as a productive financial asset rather than just a digital equivalent of gold.