Ondo Finance has expanded the use of its tokenized equities by partnering with Spout Finance, enabling holders of Ondo Stocks to use their shares as collateral for USDC loans on the Solana blockchain. This collaboration allows investors to access stablecoin liquidity without immediately selling their positions, integrating traditional securities exposure with on-chain lending solutions. The initiative also connects with Alpaca’s Instant Tokenization Network, increasing interoperability within decentralized finance (DeFi).
Spout Finance enables USDC borrowing with Ondo Stocks as collateral
Spout Finance, a Solana-based lending protocol, now supports Ondo Stocks as eligible collateral. Users can borrow USDC up to 50% of their tokenized equities’ value. Notably, Spout charges zero interest rates for these loans, waiving conventional margin loan interest costs. However, the platform generates lender yield through covered-call premiums on the collateral and income from Treasury bill yields, which could result in borrowers giving up some potential stock price appreciation if options are exercised.
The integration allows investors to maintain equity exposure while gaining access to USDC for further on-chain activities. Conversion between tokens and underlying shares is facilitated by Alpaca’s Instant Tokenization Network, offering a seamless route for managing tokenized assets.
Mini dictionary: Ondo Finance is a DeFi platform focused on tokenizing real-world assets such as equities and bonds. Tokenized equities are blockchain-based representations of shares in traditional companies, allowing trading, transferring, or using them as collateral on decentralized networks.
Spout Finance allows users to borrow USDC at up to 50% of the value of their tokenized Ondo shares, with the innovative zero-interest model leveraging covered-call strategies rather than traditional interest costs.
Loan-to-value limits and liquidation risks
Spout Finance has established a maximum loan-to-value (LTV) ratio of 50%. This means users can borrow USDC equal to half the deposited value of their Ondo tokenized equities. Liquidation triggers occur when the LTV of any position rises above asset-specific thresholds, which range from 54.1% to 62.5% depending on the collateral.
When a borrower’s position surpasses the threshold, Spout’s protocol can sell a portion or all of the collateral to cover the debt and return the loan within permitted levels. Declines in the underlying equity value—or disruption in price feeds and liquidity—can increase the risk of liquidation for users.
The availability of USDC loans is also dependent on lending pool utilization. According to Spout, new borrowing halts when 85% of the USDC pool is allocated, making pool liquidity another important consideration for users.
| Feature | Details |
|---|---|
| Maximum loan-to-value (LTV) | 50% |
| Liquidation threshold | 54.1% to 62.5% (varies by asset) |
| Interest charged | 0% |
| Borrowing limits | Paused when pool utilization reaches 85% |
Alpaca Network facilitates tokenized share management
Alpaca’s Instant Tokenization Network provides a system for converting tokenized assets into and out of their underlying securities using in-kind minting and redemption. This infrastructure enables authorized participants to efficiently settle and move between various tokenized versions of assets, helping reduce fragmented liquidity across DeFi markets.
However, not all participants can freely redeem tokenized shares. Alpaca requires users to obtain authorized-participant status and approval from issuers before they can mint or redeem tokens for the underlying assets. As a result, direct access to on- and off-chain brokerage infrastructure remains limited by eligibility and issuer approval.
Mini dictionary: Alpaca’s Instant Tokenization Network is a platform enabling the minting and redemption of tokenized financial assets, allowing market participants to convert between tokenized and traditional securities subject to certain authorizations.
Solana’s growing tokenized equity market
The development coincides with increasing tokenized equity trading activity on Solana, a leading blockchain network known for its high transaction throughput. In the second quarter of 2026, DeFi Development Corp reported $8.8 billion in tokenized equity trading volume on Solana, marking a 325% increase from the previous quarter. Solana accounted for an estimated 56% of all tokenized equity trading volume during the same period, highlighting its dominance in this segment.
With $8.8 billion traded and a 325% quarter-on-quarter increase, Solana captured more than half of the tokenized equity volume in Q2 2026, demonstrating robust growth in blockchain-based stock markets.
Market participants are watching to see whether tokenized shares continue to gain functional utility beyond simple trading, especially as collateral for loans and other financial instruments.
While Spout’s integration adds to the range of use cases for Ondo’s tokenized assets, overall adoption will depend on factors such as collateral supply, pool liquidity, and borrower demand. For Ondo Finance, this development could enhance the practical value of its securities, while Solana cements its position as a key player connecting traditional financial assets with decentralized applications.
