The demand for generating returns on institutional bitcoin holdings is on the rise, 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 reflects a changing perception of bitcoin among institutions, which are now exploring ways to generate immediate returns from the asset. The emergence of bitcoin-native yield infrastructure has driven this shift, with projects like Rootstock and Babylon developing mechanisms that facilitate the use of BTC in lending and other financial strategies without leaving 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 a bitcoin-backed stablecoin, all without being rehypothecated.
While institutional adoption of these products is still in its early stages and yields are relatively low, projects like Mezo demonstrate a growing trend of institutions treating bitcoin as a productive financial asset rather than just a store of value.