spot_img

Anchorage Enables SOL Borrowing Without Moving Custody

Date:

- Advertisement -spot_img
- Advertisement -spot_img


Anchorage Digital has partnered with Kamino and Solana Company to roll out a structure that allows institutions to borrow against staked Solana without moving assets out of regulated custody, potentially addressing a key friction between traditional finance and decentralized lending markets.

In a Friday announcement, Anchorage said the initiative expands its Atlas collateral management platform by integrating with Kamino, a Solana-based decentralized lending protocol.

The effort is being carried out in collaboration with Solana Company, a publicly traded Solana (SOL) treasury created in partnership with Pantera Capital and Summer Capital. 

Under the structure, institutions can use natively staked SOL as collateral for onchain borrowing while the assets remain held at Anchorage Digital Bank, a federally chartered crypto bank. That means investors can continue earning staking rewards while accessing liquidity through Kamino’s lending markets.

- Advertisement -spot_img

Anchorage acts as collateral manager, overseeing loan-to-value ratios, margin requirements and, if necessary, liquidations. Because the collateral remains in segregated custody, institutions do not need to move assets into smart contracts, a requirement that has historically limited participation by regulated entities.

Solana Company is the second-largest SOL-based digital asset treasury, holding 2.3 million SOL. Source: CoinGecko

Related: Solana treasuries sitting on over $1.5B in paper SOL losses

DeFi legislation hangs in the balance

The integration between Anchorage Digital, Kamino and Solana Company underscores growing institutional interest in decentralized finance. However, that momentum is unfolding against an uncertain regulatory backdrop in the United States, where lawmakers are still debating how to oversee digital assets and DeFi platforms.

At the center of the debate is the proposed CLARITY Act, which aims to establish clearer jurisdictional boundaries and regulatory standards for digital assets, including DeFi protocols. 

While the bill is intended to reduce uncertainty for market participants, some DeFi advocates argue that it falls short of addressing how decentralized protocols, developers and governance structures should be treated under the law.

Source: Yahoo Finance

Industry groups have raised concerns that earlier draft language, including amendments introduced in January, does not sufficiently distinguish between centralized intermediaries and decentralized systems.

Amid the deadlock over the CLARITY Act’s future, the Trump administration convened a meeting with industry representatives earlier this month to break the impasse and gather feedback on outstanding provisions related to DeFi oversight and market structure.

Related: Who gets the yield? CLARITY Act becomes fight over onchain dollars

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy



Source link

- Advertisement -spot_img

LEAVE A REPLY

Please enter your comment!
Please enter your name here

− 4 = 3
Powered by MathCaptcha

Share post:

Subscribe

spot_img

Popular

More like this
Related

Crypto Needs Privacy To Scale in Payments: Binance Co-Founder CZ

The lack of privacy for onchain transactions is...

Wall Street is desperate to copy crypto’s prediction markets as Cboe files for “Yes/No” options

Cboe wants to bring back all-or-nothing options, a...

WLFI May Have Signaled Crypto Crash Hours Before Bitcoin: Study

World Liberty Financial Token (WLFI), a DeFi governance...