Threshold x Mezo: Inside Mezo’s tBTC-Backed Platform

A deep dive into how Mezo's BitcoinFi platform leverages tBTC's decentralized infrastructure to unlock new possibilities for Bitcoin holders

What if you could pay your mortgage with Bitcoin without selling it? Or access working capital for your business while keeping your BTC position intact? Matt Luongo (Co-Founder of Mezo) tweets about this on launching Mezo, a platform where people can borrow against their Bitcoin.

As of May 28, 2025, Mezo (@mezonetwork) officially launched their mainnet with tBTC at its core. A Bitcoin-friendly app that can be used onchain, offering a “buy now, pay never” experience where users can access liquidity, services, and staking opportunities without selling their BTC. This allows users to set up a self-custodial loan using Bitcoin as collateral. And beneath it all, tBTC(@tBTC_project) hums along as the decentralized infrastructure that powers every transaction, every loan, and every DeFi possibility.

The BitcoinFi Thesis: Unlock Bitcoin’s Full Potential

Bitcoin stands as pristine collateral: scarce, liquid, globally recognized. Yet using it means selling it. Taxes hit. Future upside vanishes. The alternative is to hand your keys to centralized lenders and trust the word of custodians. What happened to “Don’t trust, verify”?

When using tBTC on Mezo, your Bitcoin stays yours while it works. No custodians. No permission slips. Just Bitcoin serving as a trustless, programmable asset that moves.

Ten billion dollars' worth of Bitcoin derivatives already circulate around the globe. Watch what happens when infrastructure catches up to imagination.

Inside Mezo: Where Bitcoin Becomes a Financial Infrastructure

Unlike typical DeFi protocols integrated into existing blockchains, Mezo stands as a Bitcoin-first blockchain, built specifically for financial services that run on Bitcoin.

The Technical Innovation: Bitcoin as Gas. Here's what matters: On Mezo, you pay transaction fees in Threshold’s trust-minimized Bitcoin (tBTC). Not a centralized synthetic representation. As a user, your wallet shows "BTC" because that's what you're using: tBTC is integrated so deeply it becomes invisible.

Why does this matter? Every transaction strengthens Bitcoin's utility. Every fee paid reinforces the ecosystem. It's like a city where Bitcoin is the only accepted currency: coherent, consistent, complete.

MUSD: Solving the Stablecoin Trilemma

Mezo's stablecoin MUSD takes a straightforward approach. Backed entirely by Bitcoin through tBTC. No algorithmic complexity. No basket of assets. No centralized bank custody. The mechanism works through:

• 150% preferred collateralization ratio
• Direct redemption: Always exchangeable for $1 worth of Bitcoin
• Market-driven stability: When MUSD trades below $1, buyers can profit by redeeming for Bitcoin. When above $1, users mint new MUSD for arbitrage

Unlike algorithmic stablecoins that failed when their backing mechanisms broke down, MUSD relies on a simple principle: every dollar of stablecoin has more than a dollar of Bitcoin behind it. Think of it like a gold-backed currency, except the gold is Bitcoin and the process is transparent on-chain.

Beyond Loans: A Complete Financial Stack

Mezo's ambition extends beyond lending:

• Bitcoin-denominated contracts: Enables you to pay suppliers, employees, and contractors in BTC
• Liquidity provision: DeFi strategies without wrapped token complexity
• Practical Bitcoin commerce: Mezo aims to enable people to purchase everything from houses to daily groceries and coffee with BTC loans, without actually spending their Bitcoin holdings.

Each service reinforces the others. Network effects compound.

Why tBTC? The Decentralization Imperative

Mezo could have picked any Bitcoin representation from the shelf. They chose tBTC. Not for convenience. For conviction.

The Trust Spectrum Think of Bitcoin representations like different ways to store value:

• Native BTC: Like gold in your personal vault: maximum security but hard to use in commerce.
• tBTC on Mezo: Like a safety deposit system where multiple banks must agree to any withdrawal. Practical AND secure.

How does tBTC achieve this? Through threshold cryptography. Imagine needing more than half of key holders to open a vault, but applied to thousands of participants. No single entity controls the deposited Bitcoin. No single point of failure exists.

Battle-Tested Infrastructure

Performance metrics matter in DeFi. tBTC demonstrates:

• 4.500+ Bitcoin of actively managed TVL
• $3.8 billion in cumulative bridge volume
• Continuous operation through multiple market cycles and stress events
• Zero Breach and is proven secure through its permissionless approach.
• 5 years of a scalable business model that keeps on growing.
• Live on 7 chains, including Ethereum, Arbitrum, and BOB, among others - making it the widest DeFi-friendly tokenized Bitcoin to date, with two other network integrations expected soon.

This represents mature infrastructure beyond experimental technology.

Built for Integration

Unlike simple wrapped tokens, tBTC was architected for deep protocol integration:

• Gas payment systems
• Collateral mechanisms
• Cross-chain composability

On Mezo, these capabilities enable tBTC to disappear into the background, letting Bitcoin functionality shine through.

The Bigger Picture: Financial Freedom Through Bitcoin

The Mezo-tBTC fusion means more than clever engineering. We're watching Bitcoin's promise unfold in real time. Feel the implications:

1. Individual users access credit with no loss in value . Build businesses on Bitcoin rails. Touch global finance without asking permission.
2. Institutions manage treasuries with pristine collateral. Program financial operations. Slash counterparty risk through decentralization.
3. Bitcoin itself grows hungrier. Every use case strengthens the network effect. Peer-to-peer electronic cash becomes peer-to-peer electronic finance with teeth.

What Happens Next?

Mezo mainnet launches this week. This is what it could be like after,

1. Next 6-12 months: Early adopters validate. Liquidity deepens. Infrastructure matures.
2. Years 1-3: Institutions adopt. New products emerge. Cross-chain integration becomes seamless.
3. Years 3-5: BitcoinFi becomes standard infrastructure. Traditional finance interfaces with Bitcoin-native systems.

That $50-100 billion projection for tokenized Bitcoin by 2027? Conservative, if Mezo proves the model.

Your Move: From Observer to Participant

Permissionless systems offer universal access. No accreditation requirements. No minimum balances. Anyone with Bitcoin can participate. Consider this approach:

1. Understand the technology: Research tBTC's threshold cryptography and security model
2. Start conservatively: Test borrowing on Mezo with smaller amounts to understand the mechanics
3. Think strategically: Evaluate how BitcoinFi aligns with your long-term financial planning

This represents infrastructure development, not speculative trading. The focus remains on Bitcoin's expanding utility rather than short-term opportunities.

Bitcoin Finance Goes Live

The tBTC-Mezo integration represents a fundamental shift. Bitcoin evolves from digital gold into comprehensive financial infrastructure while maintaining its core principles of decentralization and sovereignty.

For Bitcoin holders who've anticipated this development, the moment has arrived. Bitcoin now serves as both a store of value and functional capital. The infrastructure operates live. Bitcoin finance moves from concept to reality.

And tBTC provides the critical decentralized foundation.

Ready to explore BitcoinFi? Dig into tBTC and see how Mezo builds the future of Bitcoin finance.

Disclaimer: The information provided is for informational purposes only and does not constitute financial, investment, or legal advice. Investing in cryptocurrency and digital assets involves a high degree of risk. Always conduct your research and consult with a licensed financial advisor before making any investment decisions.