The demand for generating returns on bitcoin holdings is gaining momentum, 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 changing perception of bitcoin among institutions, from a passive store of value to a capital-generating asset.
The emergence of bitcoin-native yield infrastructure, such as Rootstock and Babylon, has driven this shift by allowing BTC to be utilized in 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 (DeFi).
With 250 BTC ($19.4 million) in funding from Bullish, the project is also being used by Bullish as one of its first users, with part of its treasury being deployed into the product while maintaining its existing custody framework. The vaults allow bitcoin to be locked to earn protocol fees or used as collateral to borrow MUSD, a bitcoin-backed stablecoin, without being rehypothecated. Although 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 a growing trend of treating bitcoin as a productive financial asset, rather than just a digital equivalent of gold.