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DeFi · 1 min read

Spout Finance Launches Interest-Free Lending Against Ondo Stocks on Solana

Borrowers can access USDC loans up to 50% loan-to-value, funding lender yield by selling covered calls on underlying equity shares.

Editorial oversight: Julian Mercer, Chief Editor
Neutral
$ONDO $0.3458 −7.0% $USDC $1.00 0.0% $BTC $71,268 −3.6%

At a glance Announced

What happened
Spout Finance launched on Solana to offer interest-free USDC loans against Ondo Stocks, funding yields by writing covered calls on underlying shares.
Why it matters
The model replaces traditional borrowing interest with an equity upside cap, monetizing underlying shares through off-chain options desks.
Who is affected
Eligible non-US investors holding Ondo tokenized equities and ETFs seeking liquidity without paying borrowing interest rates.
Takes effect
2026-11-12
What's next
Spout will execute weekly covered-call cycles against pooled underlying shares held in its Alpaca brokerage custody.
Primary source
PR Newswire: Ondo Stocks Now Power Spout Finance's Interest-Free Borrowing

Key points

  • Spout Finance enabled interest-free USDC borrowing on Solana using Ondo Stocks as collateral with up to 50% loan-to-value.
  • Lender returns are generated by redeeming tokens for underlying shares via Alpaca and selling covered calls in conventional options markets.
  • If options are exercised, shares are repurchased at prevailing market prices, potentially reducing borrower collateral balances.

Ondo Stocks announced on Nov. 12 that Solana-based lending protocol Spout Finance will support its tokenized equities as collateral from its launch day, enabling non-US borrowers to draw $USDC without paying interest 1.

Rather than charging periodic borrowing fees, Spout funds returns for lenders through an institutional covered-call mechanism 1. Borrowers deposit Ondo Stocks as collateral for loans representing up to 50% loan-to-value 1. Spout redeems those tokens for the physical underlying equities via Alpaca's Instant Tokenization Network (ITN), pooling the shares in its Alpaca brokerage account and selling weekly covered calls against them in traditional options venues 1. The options premiums, net of fees, are distributed to lenders, while borrowers surrender asset appreciation above the strike price if the options expire in the money 1.

Off-Chain Redemption and Risk Tradeoffs

If the covered calls expire without being exercised, borrowers retain their full underlying upside for the week 1. Conversely, when calls are exercised, the designated shares are sold at the strike price and repurchased at market value, which can diminish the borrower's total token balance while leaving the USDC loan balance intact 1. Borrowers also face collateral liquidations if the market value of their deposited tokenized equities drops 1. Before each options cycle begins, Spout reconciles onchain receipt tokens with its brokerage equity balances 1.

Spout Finance is supported by Ondo Catalyst, a $250 million deployment vehicle targeting protocols building on the issuer's tokenization architecture 1. The integration broadens collateral utility for Ondo Finance, which previously crossed $4 billion in tokenized assets to establish itself as a primary real-world asset venue. Ondo Stocks are issued outside the US and are not registered under the US Securities Act of 1933 1.

At the time of writing, native token $ONDO was trading down 6.9% at $0.3449 amid broader market pressure, with $BTC dipping 2.5% to $71,856.

Sources

  1. [1] Ondo Stocks Now Power Spout Finance's Interest-Free Borrowing — PR Newswire, November 12, 2026

Written by Basis Desk's newsroom system from the primary sources above and machine-verified against them before publication. Market figures marked "at the time of writing" come from live exchange data. Report an error: corrections@basisdesk.news · corrections policy.

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