The demand for generating returns on bitcoin holdings is gaining momentum, prompting finance platform Mezo to introduce a new solution. 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 changing perspective on the largest cryptocurrency, as institutions increasingly view bitcoin as a capital that can produce immediate returns. The emergence of bitcoin-native yield infrastructure has driven this shift, with projects like Rootstock and Babylon developing mechanisms for BTC to be utilized in lending and other financial strategies without leaving the Bitcoin ecosystem. 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. Backed by 250 BTC in funding from Bullish, the project allows bitcoin deposited into the vaults to be locked to earn protocol fees or used as collateral to borrow a bitcoin-backed stablecoin.
Although institutional adoption remains in its early stages and yields are relatively low, projects like Mezo demonstrate a growing trend of treating bitcoin as a productive financial asset rather than just a digital equivalent to gold.