The demand for generating returns on institutional bitcoin holdings is gaining momentum, and financial platform Mezo is now offering a solution to put idle BTC to work. Mezo has launched segregated vaults, known as Enclaves, which enable institutions to earn yield on their bitcoin assets held in custody with Anchorage Digital Bank. This move reflects a shift in how institutions perceive bitcoin, from a passive store of value to a capital that can produce immediate returns. Many institutional holders are no longer content with their assets remaining inactive.
The emergence of bitcoin-native yield infrastructure, such as Rootstock and Babylon, has driven this change by allowing BTC to be utilized in lending, borrowing, and other financial strategies within the Bitcoin ecosystem. Mezo's Enclaves are designed to address institutional concerns around asset segregation, reporting, and risk management, 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 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 compared to other crypto assets, projects like Mezo demonstrate that institutions are starting to view bitcoin as a productive financial asset rather than just a digital equivalent of gold.