The demand for generating returns on bitcoin holdings is gaining momentum, with finance platform Mezo announcing its entry into the market with a new product designed to help institutions put their idle BTC to work. Mezo Prime is launching segregated vaults, known as Enclaves, which enable institutions to earn yield on their bitcoin assets held in custody with Anchorage Digital Bank.
This development reflects a broader change in how institutions perceive bitcoin, transitioning from a passive store of value to a capital source capable of generating immediate returns. The emergence of bitcoin-native yield infrastructure, such as projects Rootstock and Babylon, has driven this shift by enabling BTC to be utilized in lending, collateralized borrowing, and other financial strategies within the Bitcoin ecosystem.
Mezo's Enclaves are tailored to meet institutional requirements for asset segregation, reporting, and risk controls, addressing historical limitations that have restricted participation in crypto lending and decentralized finance. The project has received 250 BTC ($19.4 million) in funding from Bullish, which is also among the first users, allocating part of its treasury to the product while maintaining its existing custody framework. Bitcoin deposited into these vaults can be locked to earn protocol fees or used as collateral to borrow MUSD, a bitcoin-backed stablecoin, without being rehypothecated. Although 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, beyond its traditional role as a digital equivalent to gold.