What is Mezo? A Guide to The Bitcoin Bank

The movement to build new applications on Bitcoin is stronger than ever, as new projects race to boost its utility for everyday users. One key entrant is Mezo, a platform that sets itself apart by focusing on use cases around never selling your BTC.

This guide will dissect this new Bitcoin platform, helping you understand what it is and how you can use it to ‘live off’ your Bitcoin.

What Is Mezo?

Mezo is a platform that empowers people to use their Bitcoin for everyday finance, without ever having to sell it. It's designed to be an entire Bitcoin-powered economy where you can manage, borrow, and transact.

At the heart of Mezo's economy is MUSD, the first fully Bitcoin-backed stablecoin. MUSD grants users instant spending power by letting them borrow against their Bitcoin equity at low (currently 1%), fixed interest rates. This allows anyone to tap into their Bitcoin wealth for real-world financial flexibility.

The Mezo mainnet launched in May 2025 and is now a fully live platform. Users can deposit BTC into Mezo to open a fixed-rate BTC-backed loan, earn yield with their MUSD, bridge to Ethereum for more DeFi opportunities, and more. 

Who Is Building Mezo?

Thesis, a Bitcoin-first venture studio founded by developer Matt Luongo, is building Mezo. It joins projects such as Fold, tBTC, and Lolli in Thesis’ portfolio.

Thesis announced Mezo in April 2024 alongside a $21 million fundraising round led by Pantera Capital. The funds will go toward Thesis’ vision of bringing 25% of the world economy on-chain. Besides Pantera Capital, the fundraising round included participation from Multicoin, Primitive Ventures, Hack VC, and others.

How Does Mezo’s Circular Bitcoin Economy Work?

Instead of focusing on complex underlying technology, Mezo emphasizes a simple user journey called the "Circular Bitcoin Economy." Here’s how you can participate:

1. Bridge Your Bitcoin: First, you move your Bitcoin onto the Mezo platform. This is done using tBTC, a trusted 1:1 backed asset that acts as the gateway for using Bitcoin on Mezo. All BTC on Mezo, whether used for paying gas fees or interacting with apps, is enabled by the tBTC bridge.
2. Borrow MUSD: Once your BTC is on Mezo, you can use it as collateral to borrow MUSD, Mezo’s native Bitcoin-backed stablecoin. This gives you instant liquidity and spending power.
3. Use Your Liquidity: You can use your borrowed MUSD in various ways. You can swap it for other assets on Mezo's native swap feature, or use it in other applications. A key feature is depositing MUSD into MUSD Vaults, which are professionally managed strategies designed to generate additional yield on your stablecoins.

This cycle allows you to maintain your original Bitcoin position while unlocking its value and earning multiple layers of yield.

Benefits of Mezo

• Access Liquidity Without Selling: Borrow against your BTC to get cash-equivalent MUSD for your financial needs.
• Earn Yield on Your Bitcoin: Earn rewards simply for holding and securing the network with your BTC.
• Generate Additional Yield: Use MUSD in Vaults and other applications to further grow your assets.
• Supports dApp Development: Mezo is EVM-compatible, allowing developers to build familiar DeFi applications like lending, borrowing, and trading platforms powered by Bitcoin.

What Can You Do on Mezo?

• Bitcoin Loans: Take out low, fixed-rate loans in MUSD using your Bitcoin as collateral.
• Yield-Generating Vaults: Deposit MUSD into Vaults to earn yield through institutional-grade strategies.
• Swap & Provide Liquidity: Use Mezo's built-in swap feature to trade assets or provide liquidity to earn fees.

Xverse: Your Gateway to Web3 Built on Bitcoin

Xverse is a Bitcoin Web3 wallet compatible with Mezo that allows you to deposit BTC and interact with the Mezo ecosystem. With Xverse, you can bridge your BTC to Mezo and use applications like Acre to explore yield opportunities.

In addition to BTC, Xverse supports Bitcoin Ordinals, BRC-20 tokens, Runes, and a range of digital assets on Stacks.

Download Xverse today to store and manage your assets for the new wave of Bitcoin applications!