The interest from institutions in generating returns on their bitcoin holdings is gaining momentum, prompting finance platform Mezo to launch a new solution for passive asset utilization. Mezo Prime is introducing segregated vaults, known as Enclaves, which enable institutions to earn yields on bitcoin held in custody with Anchorage Digital Bank. This development reflects a broader change in how institutions perceive bitcoin, transitioning from a store of value to a capital generator.
The emergence of bitcoin-native yield infrastructure, such as Rootstock and Babylon, has driven this shift by facilitating the use of BTC in lending and 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.
With 250 BTC in funding from Bullish, the project aims to provide a secure and controlled environment for institutions to deploy their bitcoin assets. The vaults allow bitcoin to be locked for protocol fees or used as collateral for borrowing MUSD, a bitcoin-backed stablecoin, without rehypothecation.
While institutional adoption and yields are still in the early stages, Mezo's initiative demonstrates a growing trend of treating bitcoin as a productive financial asset rather than merely a digital equivalent of gold.