Coinbase has added Solana (SOL) as collateral on its crypto-backed lending product, letting eligible U.S. users borrow up to $100,000 in USDC (USDC) without selling their tokens.
SOL Joins Bitcoin And Ether Collateral List
The exchange confirmed the addition on May 12, according to a post shared on X. The product runs through Morpho, a decentralized lending protocol on Coinbase's Layer-2 network Base. SOL holders can draw stablecoin liquidity while keeping full exposure to the underlying token, with no fixed repayment schedule attached.
The maximum loan-to-value ratio sits at 70%, meaning a holder with $10,000 in SOL can pull up to $7,000 in USDC.
If the LTV crosses the liquidation threshold, a 4.38% penalty applies and the position closes automatically.
The service is open to U.S. customers outside New York, with Bitcoin (BTC) and Ether (ETH) already accepted on the same product, which has originated more than $2.3 billion in loans since the platform's launch earlier this year.
Also Read: Binance CMO Rachel Conlan To Exit Jun. 15 After 3 Years, Trust Wallet's Eowyn Chen Steps In
Ben Shen Signals Everything Exchange Push
Ben Shen, Coinbase's head of financial services and loyalty, framed the launch as part of the firm's push to make the exchange a deeper venue for active SOL users.
He tied the move to an "Everything Exchange" strategy, which seeks to extend token utility past simple spot trading.
The product line forms part of a broader bet on on-chain rails through the Base network.
With holders able to access cash against SOL on-chain, fewer tokens need to hit the open market during pullbacks, which can soften forced selling pressure.
Bitcoin still dominates the collateral mix, though the SOL entry marks the first new Layer-1 added in months, with XRP (XRP) sitting behind BTC and ETH on the loan book at roughly $31.6 million.
SOL Price And Recent ETF Flows
SOL traded near $95 on May 13, holding a 13% weekly gain and a $55 billion market cap. The token remains roughly 68% below its January 2025 record near $295. Funding rates also flipped positive this week on derivatives markets, with long traders paying shorts.
Spot Solana ETFs have logged a steady run of inflows since early May, with SoSoValue data showing $19.07 million on Tuesday and $26.57 million the prior day, marking seven straight sessions of positive flows. The recovery contrasts sharply with February, when SOL fell to roughly $77 amid a broader risk-off move, before spending most of March and April stuck between $82 and $92.
Read Next: SAGA Jumps 76% As Trading Volume Towers 21x Above Market Cap