Mezo Network launched its mainnet, offering a platform for loans where Bitcoin holders can secure credit at 1% using their assets as collateral.
Launch of Bitcoin Collateral Loan Platform
The Mezo Network mainnet launch in May 2025 introduces a platform designed for financial applications on Bitcoin, enabling BTC holders to secure low-interest loans. This initiative is led by **Matt Luongo**, CEO of Thesis, backed by **Pantera Capital**. Mezo offers the **MUSD stablecoin** and aims to provide various financial options for Bitcoin users.
Enhanced Financial Utility of Bitcoin with 1% Loan Rates
The launch of Mezo Network could significantly impact Bitcoin's utility in financial markets. Bitcoin users gain access to credit without selling their BTC, potentially stabilizing personal finance strategies. The financial implications may also lead to the creation of new use cases for Bitcoin. Industry leaders, like **Dan Held**, emphasize that the low borrowing rates are transformative for Bitcoin, promoting a **Bitcoin-as-collateral economy**.
Layer-2 Solutions Revitalize Bitcoin DeFi Prospects
Previous Bitcoin DeFi efforts, such as wrapped Bitcoin solutions, faced adoption challenges. Mezo's layer-2 solution offers a seamless alternative for Bitcoin holders unwilling to spend BTC. Experts foresee enhanced Bitcoin utility, paralleling historical DeFi evolution on Ethereum. Data suggests increased demand for BTC as users explore credit options without selling their holdings.
The launch of Mezo Network and the availability of 1% loans create new financial opportunities for Bitcoin users, which may significantly alter financial strategies in this market.