Stacks Launches Institutional Bitcoin Staking with 4 Key Participants
The Stacks ecosystem has launched Bitcoin Staking, allowing institutions to earn BTC-denominated rewards while keeping their BTC on Bitcoin's Layer 1. The Genesis Bond, a limited capacity bonding period, is live with four institutional participants: 21shares, HashKey Cloud, UTXO Management (a subsidiary of Nakamoto Inc.), and Sypher Capital.
The initial bond has ~250 BTC, with the first weekly rewards expected to be distributed on September 17. This launch introduces a new way for institutions to earn BTC-denominated yield by using STX as staking capacity assets that unlock a target 3% APY in BTC-denominated yield.
Participating institutions span the institutional Bitcoin market, with each entering through its own diligence, custody, and risk process. UTXO Management, HashKey, and 21shares maintain custody of their BTC on Bitcoin L1 throughout the process, while Sypher Capital participates through pooled liquid staking on the Stacks network via StackingDAO.
Bitcoin Staking rewards come from Stacks miners who bid BTC through Proof of Transfer to mine Stacks blocks. The Genesis Bond participants earn rewards from this established BTC flow, with bonded BTC locked on Bitcoin L1 using Bitcoin script.