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HashKey Cloud to deploy Bitcoin in Stacks Genesis Bond pilot

The Genesis Bond uses time-locked Bitcoin on the base layer while pairing it with STX worth about 5% of the committed BTC, making payouts variable based on STX and Stacks miner economics.

Reported · Written up by our desk · Market Structure

HashKey Cloud will deploy Bitcoin in Stacks' Genesis Bond pilot, with the Asian infrastructure provider becoming a second announced institution for the network's native-BTC yield product, Stacks founder Muneeb Ali said Aug. 27 on X, according to CryptoSlate.

CryptoSlate reports that HashKey will time-lock BTC on Bitcoin and retain custody of the BTC principal keys, while pairing the position with STX worth roughly 5% of the committed Bitcoin. The arrangement is designed to keep the BTC outside lending, wrapper, or third-party custody structures, with the bond period targeted to begin around Sept. 10, subject to the pilot terms.

Stacks targets about 3% annualized from BTC committed by its miners, but CryptoSlate says the bond's payouts are variable because returns depend on STX pricing and Stacks miner economics. Over 24 reward cycles, a roughly six-month bond would deliver about 1.44% of locked BTC if the target is realized, while miner revenue shortfalls could later compress returns for different participant types.

CryptoSlate adds that under the native-BTC protocol bond structure, participants can exit early through a separate path that returns BTC principal and ends remaining yield, while the paired STX stays locked for the full term. The pilot also uses a managed bootstrap, with the Stacks Endowment setting each bonding period's capacity, target yield, BTC-to-STX ratio, and allocation rather than an open auction.

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