Kamino has enabled collateralization for Backpack Securities, giving Solana DeFi users a new way to borrow USDC against redeemable, 1:1-backed tokenized equities. The feature addresses a major utility gap for Backpack assets and could intensify competition with xStocks, the current leader in Solana’s tokenized-equity lending market.

Backpack Assets Enter Solana Credit Markets

The new Backpack Market went live on October 28, allowing users to supply eligible tokenized equities and borrow USDC against them. The assets are designed to provide exposure to corporate economic benefits while maintaining 1:1 backing and redemption mechanics.

At launch, the market supports four securities:

• Micron (MU)
• SK Hynix (SKHY)
• SpaceX (SPCX)
• SanDisk (SNDK)

Risk parameters for the market were established by Allez Labs. Users can borrow against their deposited securities with a loan-to-value ratio of up to 60%, creating a foundation for leverage, liquidity management and other DeFi strategies without requiring users to sell their equity exposure.

Before the integration, Backpack Securities lacked access to a core lending function already available for rival tokenized stocks. In particular, users could not borrow USDC against their Backpack holdings, limiting the assets’ ability to move through Solana’s broader DeFi stack.

Kamino’s Tokenized Equity Competition

The Backpack Market is Kamino’s second major tokenized-equity lending offering. In July 2025, the protocol integrated xStocks assets to create Solana’s first onchain credit market for tokenized equity derivatives.

That market has since accumulated more than $29 million in supplied assets, accounting for approximately 81% of tokenized-equity deposits across Solana lending protocols. The figures highlight Kamino’s role as the primary venue for borrowing against onchain representations of public and private-company equities.

Across the wider market, xStocks retains a substantial lead in circulating supply, according to Blockworks data:

• xStocks onchain value: more than $493 million
• xStocks share of Solana’s tokenized-equity market: approximately 76%
• Kamino xStocks supplied assets: more than $29 million
• Backpack Securities: newly collateralized through Kamino

xStocks’ advantage partly reflects its earlier entry into permissionless lending markets. Backpack’s integration removes that disadvantage and gives its securities a direct path to DeFi liquidity.

What This Means

Collateralization adds a significant layer of utility to Backpack Securities. Holders can now seek USDC liquidity while maintaining exposure to their tokenized equities, potentially increasing demand, trading activity and deposits across the Backpack product line.

The launch does not immediately erase xStocks’ lead in supply or lending activity. However, it gives Backpack a missing DeFi primitive and establishes Kamino as a competitive distribution channel for both issuers. If borrowing demand develops around the new market, the feature could help Backpack narrow the gap and expand tokenized equities’ role within Solana’s lending ecosystem.