How the three-party custody model enables borrowing against staked SOL
according to Globenewswire, anchorage digital, Kamino, and Solana Company have launched a three-party custody model to support institutional SOL staking. The structure is designed so institutions can borrow against natively staked SOL without surrendering qualified custody.
In practice, SOL remains held at a qualified custodian while being natively staked. Through controlled integrations to Kamino’s on-chain markets, institutions access liquidity using that staked SOL as collateral, with collateral movements governed by predefined rules.
Collateralization, loan-to-value monitoring, margining, and potential liquidations are handled by automated controls integrated with the custodian and lending venue. The intention is to preserve regulatory oversight while enabling on-chain liquidity and continued staking rewards.
Why qualified custody with borrowing against staked SOL matters
Qualified custody generally means assets are held with a regulated financial institution that meets statutory and supervisory requirements, with segregation, recordkeeping, and controls. For many institutions, policy and regulatory expectations make qualified custody non-negotiable.
The model reduces the trade-off between security and productivity. Institutions can keep SOL in qualified custody, continue earning native staking rewards, and still unlock working capital via on-chain borrowing.
Editorially, this aligns compliance, treasury, and portfolio objectives by combining segregated-custody controls with automated collateral management. It aims to apply rule-based LTV monitoring, margin workflows, and liquidations without moving assets out of the custodian’s remit.
‘Institutions want access to the most efficient sources of on-chain liquidity, but they aren’t willing to compromise on custody, compliance, or operational control. Atlas collateral management allows institutions to keep natively staked SOL held with a qualified custodian while using it productively,’ said Nathan McCauley, Co-Founder and CEO of Anchorage Digital.
Immediate institutional impact, risk controls, and operational requirements
For institutions, the immediate impact is operational: access to liquidity against a core treasury asset without breaking custody mandates. If widely adopted, the approach could standardize workflows for funds, treasuries, and lenders seeking on-chain financing.
Risk controls center on agreed loan-to-value thresholds, continuous collateral monitoring, and predefined margin steps. If LTV breaches thresholds, automated margin notices and rule-based liquidation procedures can be triggered while maintaining qualified-custody oversight.
Operationally, participants would utilize segregated custody accounts, documented collateral schedules, and connectivity to Kamino’s liquidity. Internal policies must govern LTV caps, eligible collateral, counterparty exposure, and how margin or liquidation events are executed and reconciled.
At the time of this writing, based on data from Investing.com, Solana (SOL) was cited at $83.17, alongside elevated measured volatility. This context does not alter loan terms but frames market-side collateral dynamics.
Roles of Anchorage Digital, Kamino, and Solana Company (HSDT)
Custody, staking, and segregated accounts at Anchorage Digital
As reported by StreetInsider, collateral remains in a segregated account at Anchorage Digital Bank to maintain custody and regulatory controls. Staking occurs from within that custody environment, preserving chain participation and operational oversight.
Anchorage Digital’s role is to safeguard keys, enforce account-level controls, and integrate collateral-management actions. The intent is that LTV checks, margin instructions, and related movements occur without relinquishing custody or disrupting staking.
On-chain liquidity access and collateral management with Kamino and HSDT
Kamino provides on-chain lending and liquidity access so institutions can borrow against custodied, natively staked SOL. Collateral operations are coordinated with the custodian’s controls to keep movements rule-based and auditable.
Solana Company (HSDT) participates in the structure to demonstrate treasury-grade usage within the Solana ecosystem. The arrangement is positioned to be scalable to additional institutional participants using similar custody and collateral standards.
FAQ about three-party custody model
Can institutions keep SOL in qualified custody and still earn staking rewards while using it as collateral?
Yes. The model is designed so SOL stays in segregated, qualified custody, remains natively staked, and can serve as loan collateral simultaneously.
What risk controls (LTV thresholds, margining, liquidations) govern loans against natively staked SOL, and who enforces them?
Predefined LTVs are continuously monitored. Margin and rule-based liquidation workflows are automated across Anchorage custody controls and Kamino’s on-chain lending systems.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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