The M^0 Foundation announced a new partnership with Mezo, a Bitcoin-based economic layer developed by Bitcoin venture studio Thesis*. The goal of this collaboration is to lay the foundation for the next generation of stablecoin systems and establish Bitcoin as a powerful asset within the DeFi ecosystem. With a recently approved governance proposal, Mezo is now an official M^0 beneficiary, placing the $M stablecoin at the center of BitcoinFi.
At the center of this partnership is $M in M^0, a stable digital asset pegged to the US dollar. Mezo plans to integrate $M into its deposit portal while also converting all non-yielding stablecoins on the platform to $M. These changes are expected to address a major problem in Bitcoin DeFi (BTCFi): fragmented liquidity. Mezo and M^0 hope to create a more efficient and attractive ecosystem for stablecoin users looking to secure return on their assets by centralizing liquidity around $M.
Through its integration with M^0, Mezo is enhancing Bitcoin’s capabilities beyond its long-standing reputation as a store of value. The goal is to transform Bitcoin into an asset that drives economic activity, making it more dynamic for financial applications such as lending, borrowing, and staking.
For Thesis* CEO and Mezo founder Matt Luongo, this partnership embodies a broader vision of Bitcoin’s potential. “By leveraging $M, we aim to advance Bitcoin from a simple store of value to a powerful driver of economic activity, generating significant returns. It is part of the global economy,” Luongo said.
This latest partnership builds on the growth momentum of the M^0 Foundation, which recently raised $35 million in a Series A round. In particular, M^0’s collaboration with Fireblocks further positions it as a key player in the DeFi infrastructure space.
The latest partnership has deeper implications for DeFi in Bitcoin. Mezo’s M^0 beneficiary designation locks the $M stablecoin into BitcoinFi’s native asset with incentives for liquidity expansion.
By leveraging M^0’s monetization mechanism, Mezo is strategically positioned to maximize $M holdings and promote unified monetization assets within the ecosystem. M^0 is also enhancing the Mezo Deposit Portal with Smart $M, a wrapped version of $M designed to make monetization accessible. This will allow DeFi users to seamlessly transition from traditional zero-yield stablecoins to $M, leveraging previously untapped passive income streams.
M^0’s participation provides a sophisticated layer to the technology stack that supports Bitcoin’s financial future. The protocol provides decentralized on-chain middleware and off-chain APIs to enable institutions to become miners of integrated, fungible cryptocurrency assets.
As M^0 co-founder Greg Di Prisco explained, this integration demonstrates the potential of decentralized financial infrastructure. “Through our partnership with Mezo, we are unlocking new possibilities for DeFi on Bitcoin, expanding applications, and driving the next wave of global finance. include.”
This collaboration leverages Mezo’s infrastructure, powered by tBTC, the largest decentralized Bitcoin bridge, to enable Bitcoin holders to use their assets productively while ensuring the integrity of the network.
Also Read: M^0 Integrates with Wormhole to Improve Cross-Chain Capabilities of $M Stablecoin