The established credit markets on Solana are embracing tokenized stocks.
Backpack Securities has recently become very popular in Solana DeFi and has become one of the tokenized stock issuers favored by online traders.
However, in the past few months, Backpack assets have been lacking a key use case, which has also limited their expansion across various layers of DeFi. Previously, Backpack Securities was not able to borrow USDC using its holdings as collateral, as opposed to its competitor issuer xStocks.
Now, after cooperating with Kamino, Backpack Securities can finally be used as collateral, which opens the door to a series of fundamental DeFi strategies. Can this new feature help Backpack Securities narrow the supply gap and establish its position as the largest tokenized stock issuer among Solana?
Lend USDC on Kamino using Backpack Securities
On October 28th, Kamino enabled the mortgage function of Backpack Securities, allowing Solana DeFi users to borrow USDC by using tradable stock assets that are 1:1 backed by real company equity and are redeemable.
Kamino The newly launched Backpack Market includes Micron ( MU ), SK Hynix ( SKHY ), SpaceX ( SPCX ), and SanDisk ( SNDK ) for its initial release. The risk parameters are set by Allez Labs. Depositors can use their tokenized stocks as collateral to borrow USDC, with a maximum loan-to-value ratio of 60%.
Kamino The CEO, Michael Weisz, stated: "Tokenized stocks become truly useful when they can enter the credit market with transparent on-chain risk parameters. The model of Backpack Securities is based on 1:1 support and redemption, while Kamino provides the infrastructure that allows these assets to function as collateral. As more U.S. stocks move onto the blockchain, we expect that lending based on tokenized stocks will become one of the main ways for holders to utilize these assets."
Backpack Market also became the second major tokenized stock product of Kamino. In July 2025, Kamino integrated the assets issued by xStocks and launched the first on-chain credit market for tokenized stock derivatives on Solana.
More than a year later, the xStocks market of Kamino has accumulated over $29 million in supply assets, accounting for approximately 81% of all tokenized stock deposits in the Solana lending agreements.
Can the credit market help Backpack narrow the gap?
Although Backpack Securities has won the favor of Solana traders and leads in weekly trading volume on DEX, there is still a long way to go for this issuer in terms of on-chain supply if it wants to challenge the current leaders.
According to Blockworks data, xStocks still maintains a clear lead in terms of circulation supply. Currently, the total value of all xStocks on the chain exceeds 493 million US dollars, accounting for 76% of the Solana tokenized stock market.
Kamino implies that $ KMNO will be updated.
The launch of Backpack Market coincides with a critical moment for Kamino. Kamino was once the largest lending and borrowing market in Solana in terms of deposits and TVL calculations, but recently it has ceded this title to Jupiter Lend.
At the same time, Kamino is also actively expanding. In mid-September, the lending protocol announced the appointment of Michael Weisz, a veteran in fintech and private equity markets with over 20 years of experience, as the new CEO. In addition, the company has also begun to actively recruit senior management personnel, indicating that the protocol is seeking to expand at an unprecedented pace.
In the most recent podcast appearance, Weisz hinted that Kamino would reveal new information regarding their native token $KMNO and the continued role of this token within the protocol. To date, $KMNO has primarily functioned as a governance token, although its holders have never formally voted on any proposals.
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