Kamino Enables Collateralization of Backpack Securities

Backpack Securities have taken Solana DeFi by storm, rapidly becoming tokenized equity issuer of choice among the network’s traders.

But for many months, Backpack assets have been lacking a key utility, one that has hindered their expansion across the DeFi stack. Backpack Securities have so far been unable to borrow $USDC against their holdings, a coveted feature offered by xStocks, a rival issuer.

In collaboration with Kamino, Backpack Securities can now be collateralized, opening the door to a wealth of fundamental DeFi strategies. Can the new feature help Backpack Securities close the supply gap and assert the firm as Solana’s largest tokenized equity issuer?

Borrow $USDC Against Backpack Securities, on Kamino

On October 28, Kamino enabled the collateralization of Backpack Securities, giving Solana DeFi users the opportunity to borrow $USDC against redeemable, 1:1-backed equities that carry economic corporate benefits.

At launch, the Kamino’s new Backpack Market comprises Micron ($MU), SK Hynix ($SKHY), SpaceX ($SPCX), and SanDisk ($SNDK), with risk parameters set by Allez Labs. Suppliers can borrow $USDC against their tokenized equities with an LTV of up to 60%.

“Tokenized equities become useful when they can enter credit markets with transparent onchain risk parameters. Backpack Securities has built its model around 1:1 backing and redemption, and Kamino provides the infrastructure for those assets to serve as collateral. As more of the U.S. equity market moves onchain, we expect borrowing against tokenized shares to become one of the primary ways holders use them.” - Michael Weisz, Kamino CEO

The Backpack Market becomes Kamino’s second major tokenized equity offering. In July 2025, Kamino integrated xStocks-issued assets to launch Solana’s first onchain credit market for tokenized equity derivatives. 

Over one year later, Kamino’s xStocks market has amassed over $29M in supplied assets, representing around 81% of all tokenized equity deposits in Solana lending protocols.

Can Credit Markets Help Backpack Close the Gap?

While Backpack Securities have already won the hearts of Solana’s traders and taken the lead in weekly DEX volume, the issuer still has a long way to go before challenging the incumbent in onchain supply.

According to Blockworks data, xStocks still boasts a commanding lead in terms of circulating supply. The total value of all onchain xStocks currently sits at over $493M, representing 76% of Solana’s tokenized equity market.

While much of this is no doubt due to the xStocks’ headstart, Solana’s first tokenized equity issuer has so far enjoyed a complete monopoly of permissionless lending markets. Backpack’s entrance into the sector gives its assets a much-needed utility boost, one that will likely assist the issuer in closing the gap on its rival.

Kamino Teases Update on $KMNO

The Backpack Market launch comes at a critical time for Kamino. Once Solana’s biggest lending market by deposits and TVL, Kamino recently ceded its crown to Jupiter Lend.

Meanwhile, Kamino has got its eyes firmly set on expansion. In mid September, the lending protocol announced the appointment of new CEO Michael Weisz, a fintech and private market veteran with over 20 years of experience. Additionally, the firm has begun aggressively hiring executive talent, suggesting the protocol is seeking to scale at unprecedented pace.

On a recent podcast appearance, Wiesz hinted that Kamino would be revealing new information around its native token $KNMO, and its ongoing role in the protocol. Until now, $KMNO has primarily functioned as a governance token, although no proposals have ever been formally voted on by holders.

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