The project is backed by 250 BTC ($19.4 million) in funding from Bullish (BLSH), the digital-asset firm that is CoinDesk’s parent company. Bullish is also among the first users, deploying part of its treasury into the product while maintaining its existing custody framework, according ot the announcement.

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.

For now, institutional adoption of these products remains early and yields are relatively low compared with other crypto assets. Nevertheless, projects like Mezo demonstrate that institutions are beginning to treat bitcoin not just as a digital equivalent to gold, but as a productive financial asset.

AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.

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