The trend of institutions seeking to generate returns on their bitcoin holdings is gaining momentum, with finance platform Mezo announcing its entry into the market with a new product. Mezo Prime is introducing 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, which are now exploring ways to generate immediate returns from their holdings. The emergence of bitcoin-native yield infrastructure has driven this shift, with projects like Rootstock and Babylon developing mechanisms for 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 limitations that have historically restricted 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 a bitcoin-backed stablecoin, all without being rehypothecated. While institutional adoption of these products is still in its early stages and yields are relatively low, projects like Mezo demonstrate a growing recognition of bitcoin as a productive financial asset, rather than simply a digital equivalent to gold.