Coinbase Adopts Solana as Collateral..."Borrow 100,000 USDC Instead of Selling SOL"

▲ Solana (SOL)/AI-generated image

CryptoNews reported on May 13 (local time) that Coinbase added Solana (SOL) to the list of eligible collateral assets for its cryptocurrency-backed loan service. As a result, U.S. users can now borrow up to 100,000 USDC without selling their held Solana.

This integration took place on May 12, and Solana has been included as a major collateral asset available in Coinbase's collateralized lending product, following Bitcoin (BTC) and Ethereum (ETH). This product operates with a non-custodial lending structure utilizing the Base-based Morpho protocol.

A key condition is a maximum Loan-to-Value (LTV) ratio of 70%. For example, a user holding Solana worth $10,000 can borrow up to 7,000 USDC. The Solana provided as collateral is locked in an on-chain smart contract, and there is no separate repayment deadline for the loan.

However, if the LTV ratio reaches the liquidation threshold, the position will be automatically liquidated. In this case, a penalty of 4.38% will be applied, and the remaining collateral will be returned to the user. Borrowed USDC cannot be used directly for trading on Coinbase.

CryptoNews noted that this move provides Solana holders with an option to secure liquidity without selling. The inclusion of Solana as the third major collateral asset class, after Bitcoin and Ethereum, was also presented as a factor indicating a change in its market status.

In terms of technical trends, an analysis suggested that Solana is moving out of the $82-$92 range and heading towards the $98-$100 resistance zone. $94 was presented as a key support level to watch during short-term corrections, and if the $98-$100 range is clearly broken, resistance levels at $106 and $110 were mentioned as the next hurdles. However, CryptoNews stated that a full recovery of the long-term trend is difficult to confirm until the 200-day moving average is reclaimed.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*