The demand for generating returns on institutional bitcoin holdings is gaining momentum, prompting finance platform Mezo to introduce a solution for putting idle BTC to work. Mezo Prime is rolling out segregated vaults, known as Enclaves, which enable institutions to earn yield on bitcoin held in custody with Anchorage Digital Bank. This development reflects a shift in how institutions perceive bitcoin, transitioning from a passive store of value to a capital generator.
The emergence of bitcoin-native yield infrastructure, including projects like Rootstock and Babylon, has driven this change by facilitating BTC use in lending, collateralized borrowing, and other financial strategies within the Bitcoin ecosystem. Mezo's Enclaves are designed to address institutional concerns around asset segregation, reporting, and risk controls, which have historically limited participation in crypto lending and decentralized finance. Backed by $19.4 million in funding from Bullish, the project allows bitcoin to be locked in vaults 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 compared to other crypto assets, Mezo's initiative demonstrates a growing trend of treating bitcoin as a productive financial asset rather than just a digital equivalent of gold.