U.S. federally chartered crypto bank Anchorage Digital announced on November 19 that it has entered a strategic partnership with Mezo, a Bitcoin-focused DeFi platform. The collaboration aims to deliver a new suite of Bitcoin-powered financial services designed specifically for institutional clients.
BTCFi is expanding fast, and Anchorage Digital is making sure institutions can keep up.
Anchorage is proudly building support for @MezoNetwork so that our clients can collect BTC rewards and access liquidity without selling their assets. pic.twitter.com/C9ATykHlJ1
— Anchorage Digital @ Devconnect ?? (@Anchorage) November 19, 2025
Bitcoin-Backed Loans With a Fixed 1% APR
Through the partnership, institutional investors can now secure financing without selling their Bitcoin (BTC). Using Anchorage’s self-custodial wallet Porto, clients can deposit BTC as collateral and borrow MUSD, Mezo’s U.S. dollar–pegged stablecoin.
The loan carries a fixed annual interest rate of 1%, an unusually low figure in the DeFi sector, where floating rates are the norm. The predictable interest structure is expected to appeal to institutions seeking more stable financial planning while maintaining BTC upside exposure.
This model allows companies to unlock liquidity without liquidating their Bitcoin holdings , which is a long-standing challenge for firms seeking to use BTC productively while retaining potential price appreciation.
Regulated Infrastructure Designed for Institutions
As a federally regulated bank, Anchorage Digital offers strict compliance, security standards, and risk management. The integration of custody and DeFi lending functions within a regulated framework is expected to attract enterprises that have been hesitant to engage with decentralized finance.
The streamlined custody-to-lending flow also improves operational efficiency by consolidating asset storage and borrowing into a single institutional-grade platform.
Short-Term Yield via the Upcoming “veBTC” Feature
While the lending feature is already live, Anchorage and Mezo plan to roll out an additional service in the coming weeks called “veBTC.”
Under this mechanism, users can lock BTC for short periods between 6 and 30 days to earn rewards derived from a portion of network fees. Although distinct from staking, it similarly allows Bitcoin holders to earn yield without long-term commitments.
Mezo co-founder Matt Luongo described the integration as a way to offer “low-cost stablecoin loans and short-term rewards” for institutional Bitcoin holders.
For asset managers and publicly traded companies, the partnership represents a new, secure, and efficient pathway to leverage Bitcoin holdings across lending and yield-generating opportunities.
