The interest of institutional investors in generating revenue from their bitcoin holdings is on the rise, and financial platform Mezo has announced its entry into the market with a solution to help institutions earn returns from this previously passive asset. Mezo Prime has introduced segregated vaults, known as Enclaves, which enable institutions to earn yield on their bitcoin holdings stored in custody with Anchorage Digital Bank. This new product reflects a change in how institutions perceive bitcoin, transitioning from a store of value to a capital that can generate immediate returns. Many institutional holders are no longer content with their assets remaining idle.
This shift is partly driven by the emergence of bitcoin-native yield infrastructure, with projects such as Rootstock and Babylon developing mechanisms to utilize BTC in lending, collateralized borrowing, and other financial strategies within the Bitcoin ecosystem. Enclaves are designed to meet institutional requirements for asset segregation, reporting, and risk controls, which have historically limited participation in crypto lending and decentralized finance. The project has received 250 BTC 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 MUSD, a bitcoin-backed stablecoin, 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.