The interest from institutions to generate returns on their bitcoin holdings is gaining momentum, and financial platform Mezo has announced its entry into this space with a product designed to help institutions earn yields from what was traditionally considered a passive asset. Mezo Prime is introducing segregated vaults, known as Enclaves, which allow institutions to earn yield on bitcoin held in custody with Anchorage Digital Bank.
This development reflects a broader shift in how institutions perceive bitcoin, moving beyond its role as a store of value to recognizing its potential as a capital that can generate immediate returns. Many institutional holders are now looking for ways to put their idle assets to work. This change is partly driven by the emergence of bitcoin-native yield infrastructure, such as Rootstock and Babylon, which are building mechanisms to utilize BTC in lending, collateralized borrowing, and other financial strategies without leaving the Bitcoin ecosystem. 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 (DeFi).
The project has received 250 BTC (valued at $19.4 million) in funding from Bullish, which is also among the first users, allocating part of its treasury to the product while maintaining its existing custody framework. Bitcoin deposited into these vaults can be locked to earn protocol fees or used as collateral to borrow MUSD, a bitcoin-backed stablecoin, without the risk of rehypothecation.
Although institutional adoption of these products is still in its early stages and yields are relatively low compared to other crypto assets, initiatives like Mezo demonstrate a growing trend where institutions are starting to view bitcoin as a productive financial asset, beyond its comparison to gold.