The interest of institutional investors in generating returns on their bitcoin holdings is increasing rapidly, prompting finance platform Mezo to introduce a new solution for passive bitcoin assets. 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 change in how institutions perceive bitcoin, shifting from a store of value to a capital that can produce immediate returns. The emergence of bitcoin-native yield infrastructure has driven this change, with projects like Rootstock and Babylon creating mechanisms for bitcoin 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 limitations that have historically restricted participation in crypto lending and decentralized finance. Backed by $19.4 million in funding from Bullish, the project allows bitcoin to be locked to earn protocol fees or used as collateral to borrow a bitcoin-backed stablecoin without being rehypothecated.
Although institutional adoption of these products is still in its early stages and yields are relatively low, initiatives like Mezo demonstrate a growing trend towards treating bitcoin as a productive financial asset rather than just a digital equivalent of gold.