The push for institutions 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 shift in how institutions perceive bitcoin, transitioning from a passive store of value to a capital source 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, collateralized borrowing, and other financial strategies without leaving the Bitcoin ecosystem.
Enclaves are designed to address institutional requirements for 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 enables bitcoin to be locked to earn protocol fees or used as collateral to borrow MUSD, a bitcoin-backed stablecoin, without rehypothecation. 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 that institutions are starting to view bitcoin as a productive financial asset rather than just a digital equivalent of gold.