The trend of institutions seeking to generate returns on their bitcoin holdings is gaining momentum, prompting financial platform Mezo to introduce a new solution for passive asset holders. 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 how institutions perceive the largest cryptocurrency, transitioning from a store of value to a capital-generating asset. The emergence of bitcoin-native yield infrastructure has driven this shift, with projects like Rootstock and Babylon creating mechanisms for BTC to be utilized in lending and other financial strategies.
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. Backed by $19.4 million in funding from Bullish, the project allows users to lock bitcoin to earn protocol fees or use it as collateral to borrow a bitcoin-backed stablecoin without rehypothecation. While institutional adoption and yields are still in the early stages, Mezo's initiative demonstrates a growing trend of institutions treating bitcoin as a productive financial asset rather than just a digital equivalent of gold.