Anchorage Digital has announced a significant partnership with Kamino Finance and Solana Company, aimed at facilitating institutional borrowing against staked Solana (SOL) while ensuring that assets remain under regulated custody. This collaboration marks a pivotal development in the integration of traditional finance with decentralized lending protocols.
The partnership introduces a tri-party custody framework designed to eliminate barriers that have historically hindered institutional participation in on-chain lending markets. By combining Anchorage Digital”s advanced collateral management systems with Kamino”s decentralized lending capabilities and Solana Company”s expertise in digital asset treasury management, institutions can now leverage their staked SOL as collateral to access liquidity.
Under this innovative model, institutions can securely store their assets in segregated accounts at Anchorage Digital Bank while utilizing their staked SOL for borrowing on Kamino”s platform. This arrangement not only allows institutions to access liquidity but also enables them to earn a staking yield of up to 7% on their SOL holdings.
As part of this collaboration, Anchorage Digital assumes the role of collateral manager, offering continuous monitoring of critical factors such as loan-to-value ratios and margin requirements. Nathan McCauley, CEO and co-founder of Anchorage Digital, emphasized that this automated system enhances risk management, allowing institutional clients to utilize their staked SOL productively without sacrificing security.
Moreover, the structure supports a diverse array of collateral types, accommodating both standard digital assets like Bitcoin (BTC) and Ethereum (ETH), as well as fiat currencies. This flexibility is anticipated to attract a new segment of institutional borrowers with varied asset portfolios.
Cosmo Jiang, General Partner at Pantera Capital and board member at Solana Company, remarked on the significance of this model, stating that it exemplifies how regulated custody infrastructure can seamlessly integrate with decentralized lending platforms. Jiang noted that this scalable model is likely to set a standard that other treasury entities will seek to emulate.
Solana Company is poised to be the first treasury entity to implement this arrangement, as it aims to enhance its SOL treasury holdings while increasing its exposure in public markets. As of now, SOL and Kamino Finance (KMNO) are experiencing notable price movements, with SOL trading around $84 and KMNO at approximately $0.029, reflecting gains of nearly 10% and 8%, respectively, over the last 24 hours.
This partnership between Anchorage Digital, Kamino Finance, and Solana Company represents a strategic advancement in the crypto ecosystem, highlighting the growing convergence of institutional finance with blockchain technology.
