--- title: "Spout Finance Launches Interest-Free Lending Against Ondo Stocks on Solana" description: "Borrowers can access USDC loans up to 50% loan-to-value, funding lender yield by selling covered calls on underlying equity shares." url: https://basisdesk.news/news/spout-finance-interest-free-borrowing-ondo-stocks-solana published: 2026-11-12T14:36:43.558Z modified: 2026-11-12T14:36:43.558Z section: DeFi author: Basis Desk Newsroom (AI-generated, source-verified) sentiment: neutral tickers: [ONDO, USDC, BTC] tags: [rwa, solana, lending, options, derivatives] license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice. --- # 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. ## At a glance - **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. - **Status:** announced - **Primary source:** [Ondo Stocks Now Power Spout Finance's Interest-Free Borrowing](https://www.prnewswire.com/news-releases/ondo-stocks-now-power-spout-finances-interest-free-borrowing-302937805.html) — PR Newswire ## 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. ## Editorial remark - **Context:** Ondo has methodically expanded the utility of its tokenized equity platform via Solana and traditional brokerage integrations like Alpaca's Instant Tokenization Network, aiming to bring off-chain equity yield dynamics into decentralized finance. - **Impact:** Eligible non-US investors can unlock liquidity against tokenized equities without ongoing interest drag, though they bear strike-price cap risks and potential share erosion alongside standard liquidation exposure. - **Watch:** Reconciliation stability between Alpaca brokerage accounts and onchain receipt tokens across volatile weekly market cycles and heavy call exercise periods. 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](https://basisdesk.news/news/ondo-finance-becomes-largest-tokenization-platform-four-billion) 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. [Ondo Stocks Now Power Spout Finance's Interest-Free Borrowing](https://www.prnewswire.com/news-releases/ondo-stocks-now-power-spout-finances-interest-free-borrowing-302937805.html) — PR Newswire, 2026-11-12 --- Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai