The race to unlock returns on institutional bitcoin holdings is gaining momentum, with finance platform Mezo announcing its entry into the market with a new product designed to generate yields from what has traditionally been a passive asset. Mezo Prime has launched segregated vaults, known as Enclaves, which enable institutions to earn yields on bitcoin held in custody with Anchorage Digital Bank.
This development reflects a changing perception of bitcoin among institutions, from a store of value to a capital source capable of producing immediate returns. The emergence of bitcoin-native yield infrastructure, such as Rootstock and Babylon, has driven this shift by facilitating lending, collateralized borrowing, and other financial strategies within the Bitcoin ecosystem.
Mezo's Enclaves are tailored to meet institutional requirements for asset segregation, reporting, and risk controls, which have historically hindered participation in crypto lending and decentralized finance. The project has received 250 BTC ($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 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 of gold.