The demand for generating returns on institutional bitcoin holdings is gaining momentum, with finance platform Mezo introducing a new solution to help institutions earn yields on their bitcoin assets. Mezo Prime is launching 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 passive store of value to a capital-generating asset.
The emergence of bitcoin-native yield infrastructure has driven this shift, with projects like Rootstock and Babylon developing mechanisms for using BTC in lending, borrowing, and other financial strategies. 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 ($19.4 million) in funding from Bullish and will be used by the company as one of the first users, 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 treating bitcoin as a productive financial asset rather than just a digital equivalent to gold.