The demand for generating returns on bitcoin holdings is gaining momentum among institutions, prompting finance platform Mezo to launch a new product that enables the creation of yield from traditionally passive assets. Mezo Prime is rolling out 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 change in how institutions perceive the largest cryptocurrency, transitioning from a store of value to a capital source capable of producing immediate returns. Many institutional holders now seek to activate their assets, rather than letting them remain dormant. The emergence of bitcoin-native yield infrastructure, such as Rootstock and Babylon, has driven this shift by enabling BTC to be utilized in lending, collateralized borrowing, and other financial strategies within the Bitcoin ecosystem.
Mezo's Enclaves are designed to address 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, a digital-asset firm and parent company of CoinDesk, which is also among the first users of the product. By deploying part of its treasury into the product, Bullish maintains 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 merely a digital equivalent to gold.