The interest among institutions to generate returns on their bitcoin holdings is gaining momentum, prompting finance platform Mezo to introduce a solution for passive bitcoin assets. Mezo Prime is rolling out 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, from a store of value to a capital that can produce immediate returns. The emergence of bitcoin-native yield infrastructure has driven this shift, with projects like Rootstock and Babylon creating mechanisms for bitcoin to be utilized in lending and other financial strategies within the Bitcoin ecosystem.
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 bitcoin deposited into the vaults to be locked to earn protocol fees or used as collateral to borrow 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 a growing trend of treating bitcoin as a productive financial asset rather than just a digital equivalent of gold.