The demand for generating returns on bitcoin holdings is increasing among institutions, prompting finance platform Mezo to offer a solution for putting idle BTC to work. Mezo has introduced segregated vaults, known as Enclaves, which enable 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 passive store of value to a capital asset capable of generating immediate returns.
The emergence of bitcoin-native yield infrastructure, such as Rootstock and Babylon, has driven this shift by facilitating the use of BTC 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.
The project has received 250 BTC ($19.4 million) in funding from Bullish, which is also among the first users, allocating part of its treasury to the product 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 rehypothecation.
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.