The demand for generating returns on institutional bitcoin holdings is gaining momentum, prompting finance platform Mezo to introduce a new solution for passive asset holders. Mezo Prime has launched segregated vaults, known as Enclaves, enabling 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 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 participation. Backed by 250 BTC in funding from Bullish, the project allows bitcoin to be locked for protocol fees or used as collateral for a bitcoin-backed stablecoin without rehypothecation. While 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 of gold.