Ondo Stocks, a platform offering tokenized exposure to U.S. stocks and ETFs, has partnered with Spout Finance, a Solana-based borrowing and options platform, to let users borrow USDC against tokenized assets without paying interest. The integration will be available when Ondo Stocks launches on Solana.
Instead of charging borrowers interest, Spout generates returns for lenders through a covered-call strategy. Using Alpaca, a brokerage and stock trading infrastructure provider, Spout converts Ondo Stocks tokens into the underlying shares and sells call options against them in traditional markets. The option premiums are then used to pay lenders.
Users can borrow up to 50% of their collateral value. For example, $10,000 in tokenized stocks could support a loan of up to $5,000. In exchange for interest-free borrowing, users forgo potential gains above the strike price if an option is exercised. If the options expire unexercised, borrowers retain all potential upside for that cycle.
Borrowers must also maintain sufficient collateral. If the value of their tokenized assets falls, some of the collateral may be sold to repay the loan.
Image: Magnific
