The demand for generating returns on bitcoin holdings is increasing, and Mezo, a financial platform, has launched a new product to cater to this need. Mezo Prime is introducing segregated vaults, known as Enclaves, which enable institutions to earn yield on their bitcoin assets held in custody with Anchorage Digital Bank. This development reflects a change in how institutions perceive bitcoin, moving beyond its traditional role as 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, 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). The project has received 250 BTC ($19.4 million) in funding from Bullish, which is also among the first users, deploying part of its treasury into the product while maintaining its existing custody framework. 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.
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 institutions treating bitcoin as a productive financial asset, rather than just a digital equivalent to gold.