The demand for generating returns on institutional bitcoin holdings is on the rise, prompting finance platform Mezo to introduce a new solution. Mezo Prime is rolling out segregated vaults, known as Enclaves, enabling 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 passive store of value to a capital source capable of producing immediate returns. The emergence of bitcoin-native yield infrastructure, such as Rootstock and Babylon, has driven this shift by facilitating the use of BTC in lending, borrowing, and other financial strategies within the Bitcoin ecosystem.
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 250 BTC in funding from Bullish, the project allows users to lock bitcoin to earn protocol fees or use it as collateral to borrow a bitcoin-backed stablecoin, all without rehypothecation. While institutional adoption of such products is still in its early stages and yields are relatively low compared to other crypto assets, Mezo's initiative demonstrates a growing trend of treating bitcoin as a productive financial asset rather than just a digital equivalent of gold.