Bitcoin News Today: Bridging Custody and DeFi: Anchorage-Mezo Expand Bitcoin's Institutional Utility

Anchorage Digital and Mezo have forged a strategic partnership to expand institutional access to Bitcoin-backed financial products, marking a significant step in the evolution of Bitcoin finance (BitcoinFi). The collaboration, announced on Nov. 19, 2025, enables institutional clients to borrow against their Bitcoin holdings via Mezo's MUSD stablecoin at a fixed rate of 1% and earn yield through veBTC tokens. The integration leverages Anchorage Digital's institutional-grade self-custody wallet, Porto, to provide a secure and compliant infrastructure for these services according to industry analysis.

The partnership addresses a critical gap in the market: while Bitcoin has attracted massive institutional interest, its utility for generating yield or leveraging liquidity has remained limited according to market reports. Mezo's platform offers a solution by allowing users to lock Bitcoin for periods of 6–30 days, earning rewards through veBTC. These rewards are derived from on-chain network fee sharing, with longer lock periods incentivized by higher returns and governance rights over protocol economics as detailed in a recent report. The veBTC mechanism is designed to democratize Bitcoin's value capture, aligning with Mezo's vision of a decentralized banking system according to industry analysis.

Anchorage Digital's role as a federally chartered crypto bank and its global regulatory licenses, including a Major Payment Institution License from Singapore's Monetary Authority of Singapore, further bolster the partnership's credibility according to financial analysis. The collaboration builds on Anchorage's recent expansion into Bitcoin-native DeFi, including its integration with BOB's hybrid Bitcoin-Ethereum ecosystem as reported by industry sources. By bridging traditional custody infrastructure with decentralized finance, Anchorage and Mezo aim to unlock $45 billion in Bitcoin-backed borrowing potential by 2030, according to a February 2025 market report.

Institutional adoption has already begun to accelerate. Over the past nine hours, Anchorage Digital received 4,094 BTC (≈$405M) from entities like Coinbase, Cumberland, and Galaxy Digital, suggesting ongoing institutional interest. Meanwhile, Mezo's CEO, Matt Luongo, emphasized the partnership's role in realizing Hal Finney's vision of a Bitcoin-based banking system, where users issue digital currency backed by Bitcoin without reliance on centralized institutions according to market analysis.

The partnership's immediate impact is evident: borrowing via MUSD is now live on Porto, while veBTC rewards will follow in early 2026 as reported in official announcements. For public companies and digital asset treasuries, the integration provides a compliant on-ramp into BitcoinFi, enabling them to optimize liquidity and yield without selling their Bitcoin holdings according to industry experts. As the total value locked in Bitcoin DeFi surges from $200 million to over $8 billion in 18 months according to market data, the Anchorage-Mezo collaboration positions institutions to capitalize on Bitcoin's growing role in modern finance.