You don’t have to sell your stocks to access their value. But how do you borrow against tokenized stocks while keeping your exposure? We broke it down in our latest article, check the next tweet to read more.

“Our whole theory is that anyone with meaningful sums of capital, no matter where you are in the world, can open an Interactive Brokers account, access US equities, and get pretty cheap margin.” Our Co-Founder @0xmryan explains the opportunity for onchain finance at the @bravenewcoin podcast. Watch the full interview below.

As traditional financial assets move onchain, the cost of borrowing against them remains a challenge. Most platforms still charge borrowing interest, with rates around 5% or more depending on the assets. And despite moving onchain, the end product often looks little different from what’s available offchain. At Spout, we believe onchain finance should offer something more.

With the next phase ahead, our focus is on building the utility layer for tokenized stocks. We believe there’s more to this market than bringing equities onchain. the opportunity is to make them productive and unlock financial capabilities that have traditionally been reserved for a select few.

Tokenized stocks hit new milestones. This week, stock-backed borrowing gained traction, institutional adoption advanced, and questions around issuer consent and regulation remained unresolved. Our latest weekly roundup covers the key RWA developments shaping DeFi lending and the Solana ecosystem. Read the full roundup below ↓

THE BLOCK: Spout Finance raised $2 million from Draper Dragon, Anchorage Digital, Flow Traders, and other investors to develop its tokenized equity lending platform. The Solana-based protocol lets users borrow USDC against tokenized stocks at a flat 50% loan-to-value ratio, with 0% interest, according to the company.

been heads down building the infra behind this. you borrow against your stocks at 0%, and lenders get paid from covered calls instead of your interest. grateful to everyone who backed us, and we're just getting started 🐳

Excited to share that @SpoutFi has raised a $2m strategic funding round, backed by @DraperDragon, @Anchorage, @FlowTraders, @Taisu_Ventures, @VesselVC, @solayer_labs, and @2SquareCapital, with strategic backing from @solanalabs. @toly and @rajgokal both invested as angels, as did @giancarloMKTS the 13th Chairman of the U.S. Commodity Futures Trading Commission, who has also joined as a strategic advisor. @SpoutFi is a borrowing and lending platform where users post collateral and borrow stablecoins at 0% interest, with a flat loan-to-value ratio of 50%. We make this possible by combining lending with covered calls: lenders are paid from the premium on calls written against the collateral. It is very exciting to take everything I have learned as a protocol engineer in the blockchain space and apply it to new use cases for financial products. Blockchain technology promises easier access to financial products worldwide and a more efficient economy. This is an important step for @SpoutFi, and we are just getting started.

Leverage on stocks has always been priced for traders. Interest adds up every day, so a margin loan works for a position you hold a few weeks and gets expensive fast for anything longer. Someone who wants to hold for ten years and still cover tuition or a tax bill from their portfolio has mostly had to sell. That's why @SpoutFi was an easy conversation for us. It takes the borrowing cost to zero, paid for by covered calls on the collateral, which makes it a product for long-term holders who never had one. And as more stocks move on-chain, borrowing against them is one of the first things holders will want. Glad @DraperDragon could back Marc Ryan, Paul Van Mierlo and the Spout team, and looking forward to private beta going live.

Congrats to @SpoutFi (Cohort 4) on their $2m raise, backed by @DraperDragon, @Anchorage, @FlowTraders, and more! Spout lets you unlock cash from your tokenized stocks without selling them or paying interest. Proud to have them in the Incubator family.

Congratulations to @SpoutFi on closing a $2M strategic round from @DraperDragon, @Anchorage, @solanalabs, and the other participants. Spout is a Superteam USA portfolio company building 0% interest borrowing against tokenized US equities on Solana. Lenders earn yield from covered calls written on the collateral rather than from interest charged to borrowers. Proud day 🇺🇸 Congrats @0xmryan and team!

excited that we’ve raised $2m in a strategic round, backed by some incredible names across traditional finance and the @solana ecosystem. we’re building a different approach to borrowing against tokenized equities, and there’s a lot of work going into making it happen. stay tuned for what’s ahead.

rich people barely sell their stocks when they need cash. they can borrow against them instead, even if it means paying interest. most people don’t have that option. they have to sell. we just raised $2M to change that. everyone should be able to borrow against their stocks at 0% interest.