The interest of institutional investors in generating returns on their bitcoin holdings is increasing, prompting finance platform Mezo to introduce a new solution for passive bitcoin assets. Mezo Prime is launching segregated vaults, known as Enclaves, which enable institutions to earn yields on bitcoin held in custody with Anchorage Digital Bank. This development reflects a broader change in how institutions perceive bitcoin, transitioning from a 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 facilitating the use of bitcoin in lending and other financial strategies. Mezo's Enclaves are designed to address institutional concerns around asset segregation, reporting, and risk controls, which have historically limited participation in crypto lending and decentralized finance.
Backed by $19.4 million in funding from Bullish, the project allows institutions to lock their bitcoin to earn protocol fees or use it as collateral to borrow a bitcoin-backed stablecoin without rehypothecation. Although institutional adoption and yields are currently low, Mezo's initiative demonstrates a growing trend of treating bitcoin as a productive financial asset rather than just a digital equivalent of gold.