Stacks Labs announced that its third Bitcoin‑staking bond, known as Bond 3, has been fully subscribed. The bond, which locks BTC on Bitcoin’s layer‑1 and pairs it with Stacks’ native token STX for a six‑month term, attracted notable institutional participants including 21shares, a leading crypto ETP issuer, and Bullish, the NYSE‑listed crypto exchange operator. According to the BeInCrypto release, the bond’s 3% target annual yield was set before the offering and will be paid in BTC by Stacks miners on a weekly basis.

BTC / USD
Source: CoinGecko. Prices are indicative.

Institutional Participants Signal Growing Demand

21shares, managing over $6.5 billion across more than 60 exchange‑traded products, returned to Stacks after previous involvement in the Genesis Bond and Bond 2. Alistair Byas‑Perry, head of capital markets at 21shares, said the firm’s repeat participation reflects confidence that Bitcoin can become a productive asset rather than a static holding. Bullish, which holds roughly 22,000 BTC and ranks among the ten largest publicly traded Bitcoin holders, contributed BTC from its corporate treasury using BitGo’s qualified custody solution, newly opened for Bitcoin staking on Nov 3. The company’s spokesperson highlighted interest in how institutional custody infrastructure can unlock new opportunities for Bitcoin holders.

Mechanics and Rewards of the Bond

Each participant timelocks BTC on the Bitcoin L1 while simultaneously locking an equivalent value of STX on the Stacks network. The current parameter requires a 5% STX‑to‑BTC ratio for the six‑month term. Staked BTC remains under the custodian’s control and is not subject to slashing; it is returned in full at maturity or upon early exit. Weekly on‑chain distributions of BTC, funded by Stacks miners, provide the promised 3% annualized yield. Since Stacks began its Bitcoin‑staking program in 2021, more than 4,200 BTC have been distributed to participants.

What to Watch Next

Bond 4 is scheduled to open on Dec 3, offering another opportunity for institutions and retail investors to lock BTC on Stacks. Observers will monitor whether additional public‑company holders join, which could further validate Bitcoin’s emerging capital‑market infrastructure. The uptake of qualified custody solutions like BitGo’s may also influence the scalability of future Stacks staking bonds.