The demand for generating returns on bitcoin holdings is gaining momentum, with finance platform Mezo introducing a new solution to enable institutions to earn yield on their bitcoin assets. Mezo Prime is launching segregated vaults, known as Enclaves, which allow 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, shifting from a passive store of value to a capital that can generate immediate returns. Many institutional holders are now seeking to put their idle assets to work, driven in part by the emergence of bitcoin-native yield infrastructure. Mezo's Enclaves are designed to address institutional requirements around asset segregation, reporting, and risk controls, which have historically limited participation in crypto lending and decentralized finance. The project has received 250 BTC ($19.4 million) in funding from Bullish and will be used by the company as one of its first users.
Bitcoin deposited into the vaults can be locked to earn protocol fees or used as collateral to borrow a bitcoin-backed stablecoin, all without being rehypothecated. While institutional adoption of these products is still in its early stages and yields are relatively low, projects like Mezo demonstrate a growing trend of institutions treating bitcoin as a productive financial asset rather than just a digital equivalent to gold.