The demand for generating returns on bitcoin holdings is increasing, prompting finance platform Mezo to introduce a new solution for institutions to earn yield on their bitcoin assets. Mezo Prime is launching segregated vaults, known as Enclaves, which enable institutions to earn yield on bitcoin held in custody with Anchorage Digital Bank. This development reflects a change in how institutions perceive bitcoin, transitioning from a passive store of value to a capital-generating asset.
The emergence of bitcoin-native yield infrastructure has driven this shift, with projects like Rootstock and Babylon facilitating 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, addressing historical limitations in crypto lending and decentralized finance participation. Backed by 250 BTC in funding from Bullish, the project allows bitcoin to be locked to earn protocol fees or used as collateral to borrow MUSD, a bitcoin-backed stablecoin, without rehypothecation. While institutional adoption of such products is still in its early stages and yields are relatively low, Mezo's initiative demonstrates a growing trend of treating bitcoin as a productive financial asset, rather than just a digital equivalent of gold.