A major bank has approved Bitwise’s U.S.-listed Solana staking ETF, BSOL, for use as collateral in securities-backed loans, allowing customers to borrow up to 25% of the value of pledged shares.

The arrangement means holders of the ETF can unlock limited liquidity without selling their position, although the shares remain fully exposed to swings in Solana’s market value. Key lending terms, including interest rate, minimum loan size, repayment period and account requirements, were not disclosed.

How the lending limit works

The approved loan-to-value cap is 25%, meaning a client pledging $100,000 worth of BSOL could borrow no more than $25,000. The ETF shares secure the loan while continuing to rise or fall with the price of Solana.

What happens if the value of BSOL declines was not publicly detailed. Under the lender’s agreement, that could include a requirement to post more collateral, repay part of the loan, or have some pledged shares sold.

What BSOL offers investors

BSOL launched on NYSE Arca in October 2025 as a publicly traded product designed to give U.S. investors direct exposure to SOL. In addition to tracking Solana exposure through the fund structure, Bitwise stakes nearly all of the tokens held by the ETF.

Those staking rewards increase the assets supporting the shares, but they do not amount to the fund’s investment performance. The value of SOL can move far more sharply than the rewards earned from staking, which means shareholders can still face substantial losses even while the fund continues to generate additional tokens.

Why the structure matters for lending

The loan is backed by exchange-traded shares, not by SOL held directly in a private wallet. That distinction is important because BSOL investors do not control the underlying tokens or their private keys.

For the bank, listed ETF shares can be valued using their market price and handled through existing securities-backed lending processes. In practical terms, the policy allows borrowers to access up to $25 for every $100 in pledged BSOL shares.

What is still unknown

The approval does not amount to a special regulatory clearance for BSOL loans. It reflects the bank’s decision to accept the ETF within its own lending framework.

Several material details remain undisclosed, including the interest charged on the loans, any minimum borrowing threshold, the repayment schedule, and which types of customer accounts qualify. The next confirmed step is simply that eligible BSOL holders can now use the ETF as collateral under the bank’s terms, subject to the unpublished agreement that governs margin calls or liquidation if the share price drops.

Source: crypto.news