Tokenized Stock Platform Ondo: Spout to Support Equity Token Collateralized Lending

on November 12, according to an official Ondo Finance blog post, lending platform Spout Finance plans to support using Ondo stock and ETF tokens as collateral to borrow up to 50% of the collateral value in USDC upon its launch on Solana. Spout does not charge interest to borrowers.

As planned, Spout will redeem the tokens for underlying stocks via Alpaca's instant tokenization network and sell covered call options against those stocks, using the net option premiums after fees to compensate lenders. As the trade-off for interest-free borrowing, borrowers forego any gains above the option strike price. If the options are exercised, the underlying stocks will be sold at the strike price and repurchased at market rate, potentially reducing the borrower's token position. Should the collateral value drop, borrowers must maintain sufficient collateral coverage, otherwise positions may be liquidated to repay loans.