The demand for institutional bitcoin yield generation is gaining momentum, prompting finance platform Mezo to launch a new solution for generating returns from traditionally passive bitcoin assets. Mezo Prime has introduced 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 bitcoin, transforming it from a primarily store-of-value asset to a capital generator. The emergence of native bitcoin yield infrastructure, such as 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 designed to meet institutional requirements for asset segregation, reporting, and risk controls, addressing historical limitations in crypto lending and decentralized finance participation. Backed by $19.4 million in funding from Bullish, the project allows institutions to lock bitcoin in vaults to earn protocol fees or use it as collateral to borrow the bitcoin-backed stablecoin MUSD without rehypothecation. Although institutional adoption and yields are currently low, Mezo's initiative demonstrates a growing trend of treating bitcoin as a productive financial asset rather than just a digital equivalent of gold.