Stacks Bitcoin Staking Aims to Tap Idle Institutional Capital

Stacks (STX) is attempting to attract institutional investors by offering a unique yield product that targets idle Bitcoin, an opportunity often overlooked in the crypto space.

According to Binance Research, less than 1% of total BTC supply is currently used productively across DeFi, while staking ratios for Ethereum and Solana are significantly higher.

Bitcoin Staking, a self-custodial yield product designed by Stacks, allows BTC holders to earn a target 3% APY denominated in BTC without giving up custody. The yield is sourced from Stacks miners who bid BTC for the right to write blocks under Proof of Transfer (PoX).

UTXO Management, a Bitcoin-native asset management company, has committed capital to Bitcoin Staking, and if more institutions follow, it could drive significant demand for STX.