The demand for generating returns on bitcoin holdings is gaining momentum, prompting finance platform Mezo to introduce a solution for institutions to earn yield on their bitcoin assets. Mezo Prime has launched segregated vaults, known as Enclaves, enabling institutions to generate returns on bitcoin held in custody with Anchorage Digital Bank. This development reflects a changing perception of bitcoin among institutions, which are now exploring ways to utilize it as a productive asset that can generate immediate returns, rather than merely holding it as a store of value.
The emergence of bitcoin-native yield infrastructure has driven this shift, with projects like Rootstock and Babylon creating mechanisms for bitcoin to be used in lending 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, which have historically limited participation in crypto lending and decentralized finance.
The project has received 250 BTC in funding from Bullish, which is also among the first users of the product. Bitcoin deposited into the vaults can be locked to earn protocol fees or used as collateral to borrow a bitcoin-backed stablecoin, all without being rehypothecated. While institutional adoption of such products is still 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 of gold.