The trend of institutions seeking to generate returns on their bitcoin holdings is gaining momentum, prompting finance platform Mezo to introduce a solution for passive asset holders. Mezo Prime is rolling out 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 generator. The emergence of bitcoin-native yield infrastructure, such as Rootstock and Babylon, has driven this shift by allowing BTC to be utilized in lending and other financial strategies.
Enclaves are designed to address institutional concerns around asset segregation, reporting, and risk controls, which have historically limited participation in crypto lending and DeFi. With 250 BTC in funding from Bullish, the project aims to provide a secure and controlled environment for institutional holders.
Bitcoin deposited into the vaults can be locked to earn protocol fees or used as collateral to borrow MUSD, a bitcoin-backed stablecoin, without rehypothecation. While institutional adoption and yields are still in the early stages, projects like Mezo demonstrate a growing trend of treating bitcoin as a productive financial asset, beyond its traditional role as a digital equivalent to gold.