M^0 Foundation has announced a new partnership with Mezo, a Bitcoin-native economic layer developed by the Bitcoin venture studio Thesis*. This collaboration aims to lay down the foundation for a next-generation stablecoin system and position Bitcoin as a formidable asset within the DeFi ecosystem. Through a recently approved governance proposal, Mezo is now an official M^0 Earner and is positioning the $M stablecoin at the heart of BitcoinFi.
At the heart of this partnership is M^0’s $M, a stable digital asset pegged to the US dollar. Mezo plans to integrate $M into its deposit portal, while also converting all non-yield bearing stablecoins on its platform to $M. This shift is expected to address a major pain point in Bitcoin DeFi (BTCFi)—fragmented liquidity. By centralizing liquidity around $M, Mezo and M^0 hope to create a more efficient and attractive ecosystem for stablecoin users looking to capture yield on their assets.
By integrating with M^0, Mezo is enhancing Bitcoin’s functionality well beyond its longstanding reputation as a store of value. The aim is to transform Bitcoin into an asset that drives economic activity, making it more dynamic in financial applications like lending, borrowing, and staking.
For Thesis* CEO and Mezo Founder Matt Luongo, the partnership embodies a broader vision for Bitcoin’s potential: “By leveraging $M, we’re evolving Bitcoin from just a store of value into a powerful driver of economic activity, aiming to capture a substantial portion of the global economy,” Luongo noted.
This latest partnership builds on the growing momentum behind M^0 Foundation, which recently raised $35 million in a Series A round. Notably, M^0 has also teamed up with Fireblocks, further positioning itself as a key player in the DeFi infrastructure space.
The latest partnership has deeper implications for DeFi on Bitcoin. Mezo’s designation as an M^0 Earner aligns the $M stablecoin with incentives to expand its liquidity, anchoring it as a foundational asset for BitcoinFi.
Leveraging M^0’s Earn mechanism, Mezo is strategically positioned to maximize its $M holdings, fueling a unified yield-generating asset within the ecosystem. Additionally, M^0 is enhancing the Mezo Deposit Portal with Smart $M, a wrapped version of $M designed to make yield generation accessible. This enables DeFi users to seamlessly transition from traditional, non-yield-bearing stablecoins to $M, capitalizing on a previously untapped passive income stream.
M^0’s involvement brings a sophisticated layer to the technical stack supporting Bitcoin’s financial future. The protocol provides decentralized on-chain middleware and off-chain APIs that enable institutions to become minters of a unified, fungible cryptodollar asset.
As M^0 Co-Founder Greg Di Prisco explains, this integration exemplifies the potential of decentralized financial infrastructure: “By partnering with Mezo, we are unlocking new possibilities for DeFi on Bitcoin, broadening its applications, and driving the next wave of global financial inclusion.”
This collaboration leverages Mezo’s infrastructure—backed by tBTC, the largest decentralized Bitcoin bridge—allowing Bitcoin holders to use their assets productively while securing the network’s integrity.
Read Also: M^0 Integrates with Wormhole to Boost $M Stablecoin’s Cross-Chain Capabilities