SOL Introduces Tri-Party Custody Model to Enable Borrowing Against Staked Assets

Solana Company introduced a tri-party custody model with Anchorage Digital and Kamino, enabling institutions to earn staking rewards on SOL while using the asset as collateral for on-chain liquidity borrowing according to its announcement.

A 2026 comparison of six major Solana staking platforms—MEXC, Binance, Coinbase, Bybit, OKX, and Kraken—highlights varying APY, lock-up terms, and fees, with rates ranging from 0.9% to 20%.

Solana's market activity remains resilient despite a 45% price correction from its January 2026 high, with on-chain liquidity and decentralized exchanges showing competitive trading conditions.

Solana Company, in collaboration with Anchorage Digital and Kamino, has launched a tri-party custody model that allows institutions to earn staking rewards while using natively staked SOL as collateral. This institutional-grade model is a first of its kind and aims to enhance Solana's appeal as a platform for institutional finance. The initiative is part of broader efforts to scale Solana's DeFi ecosystem while maintaining custody benefits and compliance standards.

The tri-party model is distinct in its structure, as it enables institutions to access liquidity 24/7 without losing custody of their assets. Borrowers retain control of their collateral in a segregated account at Anchorage Digital Bank, while . This development reflects the growing maturity of Solana's financial infrastructure and its ability to compete with Ethereum and other L1s in institutional lending.

For individual investors, 2026 presents a competitive landscape for Solana staking. MEXC, for instance, offers up to 6% flexible APY. Binance and Bybit also compete with varying reward structures, while Coinbase and Kraken emphasize security and compliance. MEXC further distinguishes itself with instant withdrawal options.

The broader Solana market, however, has faced challenges. A 45% price decline from January 2026 highs was driven by leverage unwinding and macroeconomic pressures. Despite this, on-chain liquidity remains robust, with decentralized exchanges increasingly offering competitive prices for SOL. This shift underscores the maturation of Solana's DEX ecosystem, where automated market makers and Prop AMMs contribute to improved price efficiency.

What Are the Key Features of the Tri-Party Custody Model?

The tri-party custody model enables institutions to access liquidity using staked SOL as collateral while retaining custody and compliance benefits. It operates through a partnership with Anchorage Digital and Kamino, ensuring 24/7 oversight of loan-to-value ratios. This structure is designed to reduce counterparty risk and align with institutional-grade standards, making Solana an attractive platform for on-chain finance.

The model leverages Solana's high-performance infrastructure, which processes over 3,500 transactions per second. This efficiency supports scalable borrowing and lending use cases, which are essential for institutional participation in DeFi. The initiative builds on Solana's reputation as a high-throughput blockchain with low fees, further differentiating it from Ethereum and other L1s.

What Are the Risks and Considerations for Solana Staking in 2026?

Investors must weigh multiple factors when choosing a Solana staking platform. APY ranges vary significantly, from 0.9% on Binance to 20% on MEXC. Additionally, lock-up structures and withdrawal flexibility differ, with some platforms requiring fixed terms. Fees also play a role, with platforms like Coinbase and Kraken charging 25–35% on effective yields.

Beyond platform-specific risks, investors must also consider broader market volatility and the potential for liquidations during sharp price movements. Price declines can trigger margin calls or forced liquidations, especially for leveraged positions. Staking during bear markets may provide an opportunity to accumulate more SOL at lower prices.

What Is the Current Market Outlook for Solana?

Despite a 45% price correction from January 2026 highs, Solana's underlying fundamentals remain resilient. Treasury holders continue to stake large portions of their holdings, signaling long-term confidence. Institutional inflows and ETF growth further support the narrative that Solana is transitioning from a speculative asset to a utility-driven platform.

Solana's ambitions to capture a significant share of the $2 trillion stablecoin market could drive future adoption. The network currently processes 2–3 times more transactions than Ethereum, giving it a competitive edge in high-frequency payments. However, technical challenges and competition from other blockchains remain risks to its valuation thesis.