Anchorage Digital, Kamino and Solana Company have announced a collaboration that has been described as a first-of-its-kind tri-party custody model.
It unlocks an efficient strategy for onchain borrowing on Solana without moving assets out of Anchorage Digital Bank, which means that staked SOL can now be used as collateral for loans within a regulated environment.
Why are Anchorage Digital, Kamino, and Solana Company working together?
The joint institutional capital venture aims to bring united institutional capital to Solana’s DeFi ecosystem. It plans to do this by enabling regulated institutions to productively use their SOL holdings without compromising on compliance.
Institutions will be able to borrow against natively staked SOL while keeping assets in qualified custody at Anchorage Bank. Anchorage will act as the collateral manager using its Atlas platform for automated risk controls, loan-to-value monitoring, margin calls and liquidations.
“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, bringing institutional-grade risk management to Solana’s lending markets,” said Nathan McCauley, CEO and Co-Founder of Anchorage Digital.
Kamino will oversee the onchain lending markets and borrowing access, but assets will remain in segregated accounts at Anchorage. This way, there is no need to move them into smart contracts, which eliminates a major barrier.
The collaboration builds on Anchorage’s existing support for Solana and ultimately aims to bridge Solana’s high-performance DeFi with TradFi.
As for why this is all going down on Solana, it has something to do with its reputation as the fastest-growing blockchain, which leads the industry in transaction revenue and processes more than 3,500 transactions per second.
It also happens to be the most widely adopted, with an average of around 3.7 million daily active wallets and surpassing 23 billion transactions year-to-date.
One of the companies that make up the joint venture, Solana Company, also has a Solana treasury. Its mission is to support the growth and security of tokenized networks by serving as a long-term holder of $SOL, in addition to continuing the development of its neurotech and medical device operations.
Anchorage Digital’s upcoming IPO
Anchorage Digital, one of the companies that make up the recently announced tri-party custody model, is getting ready for a major capital raise as it positions itself for a potential public listing.
According to reports, the company seeks between $200 million and $400 million in fresh funding, with an initial public offering under consideration for sometime next year.
Anchorage’s ambitions have been linked to its regulatory standing. Its affiliate, Anchorage Digital Bank National Association, is the first federally chartered crypto bank in the United States, and the status has set Anchorage apart from rivals, particularly as Washington gets ready to formalize rules around stablecoins and digital asset infrastructure.
Since the passage of the GENIUS Act in July, Anchorage has been positioning itself to play a central role in stablecoin issuance and related services.
Last September, Chief Executive Nathan McCauley revealed plans to double the size of the firm’s stablecoin team over the next year, in anticipation of a surge in demand for dollar-backed digital tokens from banks, fintech firms and global institutions.
