How Bitcoin on Mezo and MUSD Eliminate the Hidden Costs of Banking

There’s an unseen thief in your bank account.
You’ve been there before: you check your bank statement, expecting a certain balance, only to find it chipped away by a series of small, mysterious charges. A "monthly service fee" here, a "transfer charge" there.

Individually, they seem minor. But added up, they represent an unseen thief in your account, a constant, quiet drain on your wealth.

Hidden costs are the default setting in traditional banking. From overdraft penalties to exorbitant wire fees, these charges are the price of admission to a centralized, inefficient financial world. Whether you're wiring money abroad, applying for a loan, or simply moving between currencies, you're often paying more than you realize—and rarely with clear disclosures.

Mezo and MUSD break that pattern. Mezo reengineers core banking primitives using Bitcoin as the base layer. This system makes banking legible, onchain, and user-aligned. Here's how they eliminate hidden costs entirely.

Deconstructing the Hidden Financial Drains of Traditional Banking

For decades, we've been conditioned to accept a complex web of fees as the cost of doing business. Banks extract value through layers of friction:

• The High Price of Moving Your Own Money: Sending a wire transfer, especially internationally, feels archaic for a reason. You pay upwards of $25-$50 for the privilege, wait days for it to clear, and often get hit with surprise fees from intermediary banks along the way. Additionally, FX spreads usually bury a 2–5% fee in the conversion rate.
• The "Privilege" of Keeping Your Money with a Bank: Many accounts charge a monthly "maintenance" fee unless you meet a high minimum balance, effectively penalizing those with less capital. Want to close your account? That might cost you, too.
• The Perils of Low Balances: An accidental overdraft can trigger a punitive fee of $35 or more, a charge wildly disproportionate to the actual amount overdrawn. This is a debt trap disguised as a penalty.
• The Hidden Cost of Borrowing: Personal loans and credit cards come with high-interest rates that are often variable, meaning your payments can unexpectedly rise. The terms are complex and designed to benefit the lender.
• The Illusion of "Free" Services: Even "free" checking is subsidized by these other high-fee services. And the near-zero interest your savings earn is perhaps the biggest hidden cost of all—your money is losing purchasing power to inflation while the bank profits from it.

These fees are designed to disproportionately impact people who end up feeling the impact the most. Lower account balances, not being able to fully pay off a credit card bill—once your head goes below the surface, it is a vicious cycle with seemingly no escape.

The problem goes beyond the cost— the complete lack of transparency is the underlying issue. The fees aren't disclosed up front, and users have no leverage or recourse.

Mezo uses Bitcoin as a Financial Substrate

Mezo is a Bitcoin-native protocol stack. It lets users collateralize BTC to borrow a stable asset (MUSD) with fixed, predictable terms. No hidden fees. No off-chain risks. No delay. Mezo allows you to unlock low-cost liquidity with Bitcoin-backed loans.

Forget the 7% (or more!) that banks charge for personal loans. On Mezo, you can borrow MUSD against your Bitcoin collateral at an ultra-low, fixed interest rate.

For a limited time, that rate is 1%*.

Think about that. You can access a line of credit without selling your Bitcoin, with no required monthly payments and no surprises. The rate you lock in remains fixed for the life of your loan. You use the dollar liquidity for whatever you need—a down payment, a business expense, or an investment opportunity—while retaining your full exposure to Bitcoin. It’s the ultimate way to make your assets work for you without giving up ownership.

MUSD: Dollar Liquidity Without Banks

MUSD is a stablecoin backed entirely by Bitcoin. It doesn’t use fiat reserves or bank accounts. Every MUSD is minted against overcollateralized BTC locked in smart contracts.

Eliminating Hidden Friction

• No conversion costs: Since MUSD is minted against BTC, there’s no exchange rate spread.
• No middlemen: Onchain minting and redemption mean no payment processors or clearinghouses taking a cut.
• No withdrawal fees: Users don’t need to go through banks to access their funds. MUSD can be spent or swapped directly.

MUSD can be redeemed at any time for $1 of BTC. Arbitrageurs keep it pegged, and transparent liquidation mechanisms keep it solvent.

How to Get Started

1. Create a Mezo account at mezo.org using a Bitcoin or EVM-compatible wallet.
2. Deposit BTC as collateral.
3. Borrow MUSD at a fixed interest rate (currently as low as 1%).
4. Spend MUSD directly via Mezo Market or onchain integrations.
5. Repay at your pace. Recover your BTC collateral.

* Disclaimer: The information provided in this post is for general informational purposes only. It does not constitute legal advice, investment advice, or other type of advice. Please consult with a qualified professional. The stated interest rate is fixed for the duration of an individual loan agreement once executed. However, the initial interest rate offered at the time of origination is subject to change and may vary based on prevailing market conditions, protocol parameters, and liquidity availability. Mezo does not guarantee the availability of any specific rate until a loan is finalized.

Mezo is built by Thesis, the venture studio behind tBTC, Fold, and other foundational Bitcoin infrastructure. Learn more at thesis.co.