Mezo, Anchorage Launch Mezo Prime for Institutional BTC Yield

Mezo and Anchorage Digital launched Mezo Prime, a product that stores institutional Bitcoin in segregated vaults called Enclaves, issues veBTC as proof of deposit and collateral, and lets institutions borrow Mezo’s MUSD stablecoin against that veBTC. Publicly traded exchange Bullish will be an initial client and plans to deposit 250 BTC.

The product targets firms and corporate treasuries that hold Bitcoin and seek ways to earn yield without pooling assets. Anchorage Digital, which holds a U.S. banking charter, will provide per-depositor segregated custody so each Enclave keeps assets isolated and traceable. Anchorage will also make Mezo Prime available to its existing custody customers.

Depositors receive veBTC when they place BTC into an Enclave; that token can be used as collateral to borrow MUSD. Mezo says the product does not rehypothecate deposited coins and that yield will come from on-chain protocol activity rather than reuse of assets. The company has raised $27.3 million from crypto-native investors and reports that Mezo Borrow’s value locked rose 23% in the past month according to DeFiLlama.

Matt Luongo, co-founder of Mezo and CEO of Thesis, framed the launch around idle corporate Bitcoin: “Over a million Bitcoin sits on corporate balance sheets today, and almost none of it is working. Mezo Prime changes that. Segregated custody through Anchorage Digital Bank, no rehypothecation, real yield from protocol activity. We built this for the CFOs and treasury teams who already own the asset and are ready to put it to work how they choose.”

Anchorage described the product as balancing access to on-chain yield with custody standards expected by institutions. Nathan McCauley, co-founder and CEO of Anchorage Digital, commented: “Institutions want to do more with their Bitcoin, but not at the expense of security and control. Mezo Prime delivers both secure, segregated custody and direct access to onchain yield in one platform.”

Bullish will allocate an initial 250 BTC to Mezo Prime from a corporate treasury the company reports at 24,300 BTC. Tarun Kapoor, vice president at Bullish, commented: “Bullish was built on the belief that institutional standards and digital asset participation aren’t in conflict, and we’re delighted to work with Mezo as a launch customer. Their veBTC design is a great example of that philosophy in practice — mitigating smart contract risk and keeping the underlying BTC secure.”

Corporate holders have previously used options trading and other native strategies to generate income on held Bitcoin. Mezo presents Mezo Prime as an alternative that combines regulated custody, tokenized proof of deposit and lending mechanics to provide yield while keeping custody separation and auditability.