The demand for generating returns on bitcoin holdings is on the rise among institutions, prompting finance platform Mezo to introduce a new solution for putting idle BTC to work. 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 perception of bitcoin among institutions, from a passive store of value to a capital that can generate immediate returns. With the emergence of bitcoin-native yield infrastructure, such as Rootstock and Babylon, institutions are now exploring ways 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 historical limitations in crypto lending and decentralized finance (DeFi). The project has received 250 BTC ($19.4 million) in funding from Bullish, which is also among the first users, deploying part of its treasury into the product while maintaining its existing custody framework.
Bitcoin deposited into the vaults can be locked to earn protocol fees or used as collateral to borrow MUSD, a bitcoin-backed stablecoin, without being rehypothecated. Although institutional adoption of these products is still in its early stages and yields are relatively low compared to other crypto assets, projects like Mezo demonstrate a growing trend of institutions treating bitcoin as a productive financial asset, rather than just a digital equivalent to gold.