• Anchorage Digital’s Porto wallet now supports BTC-backed borrowing via Mezo’s platform.

• Institutions can access stablecoin loans and yield opportunities without selling their Bitcoin holdings.

• The integration includes veBTC for locking BTC 6-30 days, sharing network fees and governance rights, with market projections estimating Bitcoin-backed borrowing to reach $45 billion by 2030 per Osler, Hoskin & Harcourt report.

Anchorage Digital integrates Mezo’s BitcoinFi for institutional BTC borrowing at 1% rates. Unlock compliant loans and yields on Bitcoin—explore secure DeFi tools for digital asset treasuries today.

What is the Anchorage Digital and Mezo BitcoinFi Integration?

The Anchorage Digital and Mezo BitcoinFi integration allows federally chartered institutions to borrow against their Bitcoin holdings using compliant on-chain tools. Through Anchorage’s Porto wallet, clients can secure low-cost stablecoin loans with MUSD at a fixed 1% rate, preserving BTC ownership. This partnership also introduces veBTC rewards for short-term locks, enabling yield generation and governance participation in Mezo’s protocol.

How Does Bitcoin-Backed Borrowing Work with This Platform?

Bitcoin-backed borrowing through Mezo’s integration with Anchorage Digital functions by collateralizing BTC to mint MUSD, a Bitcoin-native stablecoin pegged to the U.S. dollar. Institutions deposit BTC into the Porto wallet, where it is locked as collateral, allowing borrowing up to the collateral’s value minus a safety margin. This process ensures over-collateralization to mitigate volatility risks, with loans repayable on-chain for seamless redemption.

Supporting data from recent market analyses highlights the growth: Osler, Hoskin & Harcourt’s February report projects the Bitcoin-backed lending sector to expand to $45 billion by 2030, driven by institutional demand. Matt Luongo, CEO of Thesis and Mezo co-founder, emphasizes the innovation: “Mezo is realizing Hal Finney’s vision for a Bitcoin banking experience that issues its own digital currency backed by Bitcoin, acting as banks did before they became nationalized.”

The veBTC mechanism adds value by tokenizing locked positions, distributing on-chain network fees proportionally to commitment length—higher rewards for 30-day locks versus 6-day ones. This structure incentivizes stability while granting holders voting rights on Mezo’s fee economics, fostering community-driven protocol evolution. Built by Thesis, a Bitcoin venture studio established in 2014, Mezo focuses on decentralized products that enhance Bitcoin’s utility without compromising security.

Frequently Asked Questions

What Are the Benefits of Using Mezo’s Tools on Anchorage Digital for Institutional BTC Borrowing?

Institutions benefit from compliant access to BitcoinFi, borrowing MUSD at 1% rates without selling BTC, thus avoiding taxable events. The integration provides short-term yields via veBTC, sharing network fees and offering governance, all within a federally regulated custody platform for enhanced security and regulatory adherence.

Is Anchorage Digital’s Integration with Mezo Suitable for Public Companies Managing Digital Asset Treasuries?

Yes, this integration offers public companies a secure, compliant pathway to leverage BTC for liquidity needs, such as stablecoin loans or yield farming. It aligns with evolving regulatory landscapes, allowing treasuries to optimize holdings through on-chain tools that maintain custody standards and minimize counterparty risks.

Mezo, a Bitcoin-native DeFi platform, enables users to borrow, save, and earn yield using MUSD, powering on-chain financial services. The partnership with Anchorage Digital, a federally chartered bank, underscores the maturation of Bitcoin finance, bridging traditional institutions with decentralized innovation.

Bitcoin-backed borrowing has surged in 2025, with platforms like Ledn reporting $392 million in Q3 loans, as disclosed in October. Tether’s recent stake in Ledn further signals mainstream adoption. Meanwhile, Cantor Fitzgerald’s May collaboration with Maple Finance and FalconX marked a milestone in Wall Street’s entry into crypto credit, executing BTC-secured loans efficiently.

In Australia, Block Earner’s July launch of BTC-backed home loans allows buyers to use up to 50% of property value from their holdings, addressing housing affordability amid rising prices. A Chapman University report on housing indices illustrates the ongoing challenges, making such innovations timely.

Housing affordability index. Source: Chapman University report

Advocacy groups are also exploring DeFi to tackle global poverty, proposing Bitcoin-based solutions for financial inclusion. As these developments unfold, the Anchorage-Mezo integration positions institutions at the forefront of compliant BitcoinFi, potentially reshaping corporate treasury strategies.

Key Takeaways

• Compliant BTC Borrowing: Anchorage Digital’s Porto wallet enables fixed 1% rate loans via MUSD, offering institutions a regulated DeFi entry without asset sales.
• Yield and Governance Opportunities: veBTC rewards distribute on-chain fees for 6-30 day locks, with longer terms yielding higher returns and protocol voting rights.
• Market Growth Insight: Bitcoin-backed lending is projected to hit $45 billion by 2030; explore integrations like this to optimize digital asset portfolios strategically.

Conclusion

The Anchorage Digital and Mezo BitcoinFi integration marks a pivotal advancement in Bitcoin-backed borrowing and institutional DeFi access, delivering low-cost MUSD loans and veBTC yields within a secure, compliant framework. As platforms like Ledn and Block Earner expand similar offerings, this partnership empowers public companies and treasuries to harness Bitcoin’s potential efficiently. Looking ahead, such innovations promise to deepen Bitcoin’s role in global finance—consider evaluating these tools for your organization’s liquidity and yield strategies today.