The demand for generating returns on institutional bitcoin holdings is increasing, prompting finance platform Mezo to introduce a new solution for passive 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 the largest cryptocurrency, 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 enabling BTC to be utilized in lending 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. With 250 BTC in funding from Bullish, the project allows bitcoin to be locked to earn protocol fees or used as collateral to borrow a bitcoin-backed stablecoin without rehypothecation.
Although institutional adoption and yields are currently low, Mezo's solution demonstrates a growing trend of treating bitcoin as a productive financial asset rather than just a digital equivalent to gold.