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 rolling out segregated vaults, known as Enclaves, which enable institutions to generate returns on bitcoin held in custody with Anchorage Digital Bank. This development reflects a change in how institutions perceive bitcoin, shifting from a passive store of value to a capital that can produce immediate returns.
The emergence of bitcoin-native yield infrastructure has driven this change, with projects like Rootstock and Babylon creating mechanisms for BTC to be used in lending and other financial strategies. Mezo's Enclaves are designed to meet institutional requirements for asset segregation, reporting, and risk controls, addressing limitations that have historically restricted participation in crypto lending and decentralized finance. With backing from Bullish, which has invested 250 BTC, Mezo's solution allows bitcoin to be locked to earn protocol fees or used as collateral to borrow a bitcoin-backed stablecoin, all without being rehypothecated. Although institutional adoption of such products is still in its early stages and yields are relatively low, Mezo's initiative demonstrates a growing trend of institutions treating bitcoin as a productive financial asset rather than just a digital equivalent of gold.