Borrow against tokenized stocks

Who it's for

You're outside the US, want stock exposure onchain, and would rather borrow against it than sell, for example to fund another position or spend without triggering a sale.

How it works

xStocks are tokens backed one-to-one by real shares held by Backed Finance. Kamino runs xStocks markets where you can supply them as collateral and borrow USDC. Jupiter Lend also has xStock markets.

Steps

1. Buy xStocks (e.g. SPYx, QQQx, NVDAx) on Jupiter or inside Solflare or Phantom.
2. Open Kamino's xStocks market and supply them as collateral.
3. Borrow USDC well below the limit. Stocks can gap over weekends; keep LTV low.
4. Set alerts on the stock price and your LTV.

What to expect

Your stock exposure stays intact. You pay interest on the USDC you borrow, and you keep any price gains. Kraken also launched yield vaults for SPYx, QQQx and NVDAx via Kamino in September 2026, if you'd rather earn on your shares than borrow.

Risks

• Liquidation: if the stock falls enough, part of your collateral is sold.
• Market-hours gaps: tokens trade 24/7 but the underlying market doesn't; prices can jump at the open.
• Issuer and custody risk with Backed Finance.
• Access rules: not available to US persons.
• Oracle risk for off-hours pricing.

Exit plan

Repay the USDC loan, withdraw your xStocks, then hold or sell them on a DEX.

Level up

Pair a stock position with a stablecoin yield strategy using the borrowed USDC, but only if the yield beats your borrow rate after fees.