Anchorage Digital, Kamino Finance, Solana Company team up to strengthen institutional borrowing with SOL
|- Anchorage Digital partners with Kamino Finance and Solana Company to enable institutional borrowing with staked SOL.
- Institutions can hold their assets on the Anchorage platform while using them as collateral to access liquidity on Kamino Finance.
- The model allows institutions to simultaneously earn native staking yield on SOL while unlocking liquidity for lending and borrowing activities.
Anchorage Digital has partnered with Kamino Finance (KMNO) and Solana Company (HSDT) to enable institutions to borrow against staked Solana (SOL) while maintaining regulated custody.
Anchorage Digital opens door for institutional borrowing with staked SOL
Anchorage Digital has announced a strategic partnership with Kamino Finance and Solana Company to enable institutions to borrow against natively staked SOL without giving up regulated custody of their assets.
The collaboration introduces a tri-party custody structure designed to remove long-standing barriers that have prevented institutions from fully engaging in on-chain lending markets, according to a statement on Friday. It combines Anchorage Digital’s collateral management infrastructure with Kamino’s decentralized lending markets and Solana Company’s digital asset treasury capabilities.
Under the arrangement, institutions can deploy their staked SOL as collateral to access borrowing liquidity on Kamino’s platform while their assets remain securely stored in segregated accounts at Anchorage Digital Bank.
Anchorage Digital will serve as the collateral manager within the framework, providing automated, round-the-clock monitoring of loan-to-value ratios, margin requirements and liquidation triggers.
”Atlas collateral management allows institutions to keep natively staked SOL held with a qualified custodian while using it productively, bringing institutional-grade risk management to Solana’s lending markets,” said Nathan McCauley, CEO and co-founder of Anchorage Digital.
The model allows institutions to simultaneously earn up to 7% native staking yield on SOL while unlocking liquidity for lending and borrowing activities.
It also supports a broad range of collateral types for protocols, including standard digital assets such as BTC, ETH, and SOL, as well as fiat positions.
“Access a new class of institutional borrowers by accepting a full spectrum of collateral, from standard digital assets to reward-bearing, unwrapped (native BTC or ETH), and fiat positions,” the firm wrote.
This flexibility is expected to make the system attractive to institutional portfolios with diverse asset allocations.
Cosmo Jiang, General Partner at Pantera Capital and board member at Solana Company, noted that the model demonstrates how regulated custody infrastructure can integrate with decentralized lending markets. “Simply put, this scalable model is the blueprint other treasury companies will follow and institutional investors will demand,” said Jiang.
Solana Company will act as the first treasury entity to adopt the structure. The firm, established in collaboration with Pantera Capital and Summer Capital, aims to optimize its SOL treasury holdings while expanding public market exposure to the asset.
SOL and KMNO are trading around $84 and $0.029, up nearly 10% and 8%, respectively, over the past 24 hours as of writing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.