Anchorage Digital and Mezo have formed a strategic partnership aimed at expanding institutions’ access to Bitcoin-based borrowing and yield opportunities, marking one of the most significant integrations to date between a regulated digital asset custodian and a Bitcoin-native financial protocol.
Mezo, a bankless Bitcoin financial platform built by Thesis, offers institutional customers low-cost borrowing via the MUSD stablecoin and new BTC yield opportunities via veBTC.
Anchorage Digital provides the custodial and infrastructure layers, giving asset management companies, digital asset treasury (DAT) companies, and publicly traded companies a secure way to participate in the BitcoinFi application.
At launch, borrowing via Mezo’s MUSD stablecoin is now available directly within Porto, Anchorage Digital’s institutional self-custody wallet. The yield component powered by Mezo’s veBTC mechanism is expected to go live soon.
Borrow at a fixed interest rate of 1%
The integration will allow institutions to use Mezo’s MUSD stablecoin to borrow against Bitcoin at a fixed interest rate of 1%. Borrowing activities are fully supported through Porto, allowing businesses to access liquidity without giving up ownership of their BTC.
The move is aimed at increasing capital efficiency for asset owners who have traditionally struggled to leverage Bitcoin in their financial and corporate finance strategies.
The second phase of the partnership focuses on veBTC, a tokenized position (veNFT) that is issued when a user locks BTC on Mezo. veBTC holders earn rewards generated through a transparent on-chain network fee sharing model.
Lockup periods range from 6 to 30 days, which is significantly shorter than lockups found in other V-Token systems. Longer lock times provide higher rewards and additional governance powers, including influence on protocol fees and economic parameters.
Anchorage Digital clients will be able to access these capabilities through both Porto and the broader Anchorage Digital platform once the product goes live.
Executives call this a milestone for institutional Bitcoin finance
Matt Luongo, CEO of Thesis and co-founder of Mezo, said the partnership brings Bitcoin closer to the long-discussed vision of Bitcoin-native financial services.
“Sixteen years later, Bitcoin holders are still struggling to access and leverage their wealth,” Luongo said. “Mezo is realizing Hal Finney’s vision for a Bitcoin banking experience that issues its own digital currency backed by Bitcoin. This partnership will enable holders to borrow, earn yield, and lend through institutional-grade infrastructure.”
Nathan McCauley, co-founder and CEO of Anchorage Digital, said Bitcoin is an “untapped” asset in most institutional investors’ portfolios.
“Most of our Bitcoin holdings are dormant and not generating any income,” McCauley said. “Using protocols like Mezo shows how secure storage can support new forms of BTC utility. Access to Bitcoin rewards through institutional-grade infrastructure shows what the future of finance will look like.”
Borrowing with MUSD is available now, and veBTC rewards are expected to start in the coming weeks.
This post first appeared on Bitcoin Magazine as Mezo partners with Anchorage Digital to bring institutional-grade BitcoinFi to market and was written by Micah Zimmerman.
