The demand for generating returns on bitcoin holdings is increasing, and Mezo is now offering a solution for institutions to earn yields on their idle BTC assets. Mezo Prime has launched segregated vaults, known as Enclaves, which enable institutions to earn yield on bitcoin held in custody with Anchorage Digital Bank. This development reflects a change in how institutions perceive bitcoin, shifting from a mere store of value to a capital that can produce immediate returns. The emergence of bitcoin-native yield infrastructure, such as Rootstock and Babylon, has driven this change by allowing BTC to be utilized in lending and other financial strategies without leaving the Bitcoin ecosystem.
Mezo's Enclaves are designed to meet institutional requirements for asset segregation, reporting, and risk controls, which have historically limited participation in crypto lending and DeFi. 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, projects like Mezo demonstrate that institutions are starting to view bitcoin as a productive financial asset, rather than just a digital equivalent to gold.