The interest of institutions in generating returns on their bitcoin holdings is gaining momentum, with finance platform Mezo introducing a new solution to help institutions earn yield on their bitcoin assets. Mezo Prime is launching 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 bitcoin, from a passive store of value to a capital that can generate immediate returns.
The emergence of bitcoin-native yield infrastructure has driven this shift, with projects like Rootstock and Babylon developing mechanisms for BTC to be used 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. 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 MUSD, a bitcoin-backed stablecoin, without being rehypothecated. While institutional adoption of these products is still in its early stages, projects like Mezo demonstrate a growing trend of treating bitcoin as a productive financial asset rather than just a digital equivalent to gold.