The trend of institutional investors seeking to generate returns on their bitcoin holdings is gaining momentum, prompting financial platform Mezo to introduce a new solution for passive asset management. Mezo Prime's segregated vaults, known as Enclaves, enable institutions to earn yields on bitcoin held in custody with Anchorage Digital Bank, as announced on Wednesday. This development reflects a changing perception of bitcoin among institutions, transitioning from a store of value to a capital generator. With the emergence of bitcoin-native yield infrastructure, projects like Rootstock and Babylon are creating mechanisms for bitcoin to be utilized in lending and other financial strategies without leaving the ecosystem.
Mezo's Enclaves are designed to meet institutional requirements for asset segregation, reporting, and risk management, addressing historical limitations in crypto lending and decentralized finance. The project has received 250 BTC in funding from Bullish, which is also among the first users, allocating part of its treasury to the product while maintaining existing custody arrangements. Bitcoin deposited into the vaults can 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, projects like Mezo demonstrate a growing trend of institutions treating bitcoin as a productive financial asset rather than just a digital equivalent of gold.