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Unlock SOL Borrowing Without Moving Custody via Anchorage Custody

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Short Description

Anchorage Digital partners with Kamino and Solana Company, enabling institutions to borrow against staked SOL without moving assets from regulated custody, bridging TradFi and DeFi.

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2 minutes, 15 seconds

**Main Article

A groundbreaking partnership is set to dissolve a major barrier between regulated finance and decentralized markets. Anchorage Digital, a federally chartered crypto bank, has integrated with the Solana-based lending protocol Kamino and Solana Company, a major SOL treasury. This collaboration allows institutional investors to use their natively staked Solana (SOL) as collateral for on-chain loans through Kamino’s decentralized finance (DeFi) markets, all while the assets remain securely held within Anchorage’s regulated custody. This structure lets institutions simultaneously earn staking rewards and access liquidity, a previously complex feat due to regulatory and security concerns over moving assets into smart contracts.

Under this new framework, Anchorage acts as the collateral manager, overseeing critical risk parameters like loan-to-value ratios and managing potential liquidations. By keeping the collateral in segregated, regulated custody, the solution directly addresses a key institutional hesitation: the requirement to relinquish control of assets to purely algorithmic protocols. This move significantly reduces counterparty risk for regulated entities and represents a sophisticated step in the maturation of DeFi infrastructure, making on-chain liquidity more accessible to traditional finance players.

This innovation arrives amidst a pivotal U.S. regulatory debate. The progress in decentralized finance adoption contrasts with the ongoing legislative uncertainty, particularly surrounding the proposed CLARITY Act. While the industry seeks clear rules, initiatives like this Anchorage-Kmino integration demonstrate how practical solutions are being built today to navigate the current environment, potentially shaping the future regulatory conversation by showcasing viable models for compliant DeFi participation.

Short Summary

Anchorage Digital, Kamino, and Solana Company have launched a pivotal solution for institutional DeFi access. It enables borrowing against staked SOL while assets stay in regulated custody, merging security with liquidity. This development highlights the evolving bridge between traditional and decentralized finance, even as the U.S. continues to debate comprehensive digital asset legislation like the CLARITY Act.

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Ishaque
Ishaquehttps://finoark.com
A Finance Enthusiast which has innovative approach to almost every observations made. IRDAI - Certified Insurance Seller (Life, Health & General Insurance), NISM - Certification in AML/KYC. Pursuing Certification for Investment Advisory and MF Distribution).

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