The demand for generating returns on institutional bitcoin holdings is gaining momentum, with finance platform Mezo introducing a new product 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 shift in how institutions perceive bitcoin, from a passive store of value to a capital that can produce immediate returns. The emergence of bitcoin-native yield infrastructure, such as Rootstock and Babylon, has driven this change by providing mechanisms for bitcoin to be used in lending, collateralized borrowing, and other financial strategies within 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 MUSD, a bitcoin-backed stablecoin, without being rehypothecated.
While 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 that institutions are starting to view bitcoin as a productive financial asset rather than just a digital equivalent to gold.