The demand for generating returns on bitcoin holdings is increasing, prompting finance platform Mezo to launch a new product that enables institutions to earn yield on their bitcoin assets. Mezo Prime is introducing segregated vaults, known as Enclaves, which allow institutions to earn yield on bitcoin held in custody with Anchorage Digital Bank. This development marks a shift in how institutions perceive bitcoin, from a passive store of value to a capital that can generate immediate returns. The emergence of bitcoin-native yield infrastructure has driven this change, with projects like Rootstock and Babylon creating mechanisms for BTC to be used in lending 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 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 a bitcoin-backed stablecoin. Although institutional adoption of these products is still in its early stages and yields are relatively low, projects like Mezo demonstrate that institutions are starting to view bitcoin as a productive financial asset rather than just a digital equivalent to gold.