Rate Disclaimer: Rates and terms in this article reflect February 2026 market conditions and may change. Visit each platform's website for current rates and eligibility. This article is educational and does not constitute financial advice.

Introduction

Solana has matured from a speculative altcoin into a serious blockchain platform. Validators and developers stake millions of SOL. Institutional investors add it to diversified crypto portfolios.

But SOL holders face the same problem as Bitcoin and Ethereum holders: how do I access liquidity without selling?

The answer is simple for BTC holders—Ledn, Strike, and others offer Bitcoin-only lending. It's increasingly available for ETH holders through platforms like Figure and Lava.

For SOL holders? Options are limited but growing.

This guide explains Solana-backed loans, why they're rare, and which platforms will actually accept your SOL as collateral in 2026.

The SOL Lending Gap: Why It Exists

Most Crypto Lenders Only Accept Bitcoin

The vast majority of crypto lenders focus on Bitcoin loans because:

1. Bitcoin dominance: BTC makes up 50%+ of crypto market cap; lenders follow the liquidity

2. Lower volatility: Bitcoin is less volatile than altcoins; lenders' risk models work better with BTC

3. Institutional comfort: Institutional capital trusts Bitcoin more than altcoins

4. Simpler operations: One-asset lending (BTC) is simpler than managing multiple collateral types

Here's the lender landscape for SOL specifically:

Arch Lending and Figure are among the few regulated platforms accepting SOL collateral. Arch offers rates as low as 8.49% APR (for larger loans) with up to 60% LTV.

Why SOL Specifically?

Solana faces specific challenges as collateral:

Higher volatility:

• Bitcoin: ~50% annual volatility (in calm years)

• Ethereum: ~70% annual volatility

• Solana: ~100%+ annual volatility

When SOL is 2x more volatile than Bitcoin, lenders' risk models require lower LTV ratios or higher rates to protect against liquidation risk.

Ecosystem concentration:

• Many SOL holders are validators (concentrated position)

• Others are Solana ecosystem dApp users (correlated risk)

• Less geographic and use-case diversity than BTC or ETH

Regulatory uncertainty:

• Some jurisdictions have debated Solana's classification

• This creates custody and lending complications

Network risk:

• Solana has experienced outages (though increasingly rare)

• Bitcoin and Ethereum have been extraordinarily reliable

• Lenders are conservative about network-level risk

The Opportunity

Because SOL lending options are limited, the platforms that do offer it—Arch Lending and Figure—fill a genuine gap for SOL holders who need liquidity without selling.

How Solana-Backed Loans Work

The Basic Process

Getting a Solana-backed loan follows the same pattern as Bitcoin or Ethereum loans:

1. Select a platform: Choose Arch Lending, Figure, or another SOL lender

2. Verify identity: KYC/AML verification

3. Send collateral: Transfer SOL to the lender's custody provider

4. Receive funds: Get USDC, USDT, or USD

5. Make payments: Pay monthly interest (or interest + principal at maturity)

6. Recover SOL: Once repaid, you get your SOL back

The key difference from DeFi lending (Solend, Marinade, etc.) is custody.

Custodial loans (Arch, Figure):

• You send your SOL to a professional custodian (Anchorage Digital for Arch)

• The custodian holds it; you don't have access during the loan

• Institutional-grade security and insurance

• Simpler process (no wallet management)

DeFi loans (Solend, Marinade):

• You keep custody of your SOL

• You interact via smart contracts

• Higher risk (smart contract bugs)

• Typically higher and more variable rates

SOL-Specific Mechanics: Staking

Here's a unique aspect of SOL: staking.

Solana validators earn transaction fees and inflation rewards by staking SOL. The current staking yield is 3–4% annually.

If you're staking your SOL:

• Unstaking period: 2–3 days (you can't sell immediately)

• You'll need to unstake before pledging as collateral

• Once unstaked, you can collateralize it

Loan-to-Value Ratios for SOL

LTV ratios for SOL tend to be lower than Bitcoin due to higher volatility. Arch Lending offers up to 60% LTV (which varies by collateral type), while Figure offers 50–75% LTV depending on the asset.

Example:

• You deposit 1,000 SOL worth $100,000 (at $100/SOL)

• At 50% LTV, you can borrow: $100,000 × 0.50 = $50,000

The risk: if SOL drops 40% to $60/SOL:

• Your $100,000 collateral is now worth $60,000

• Your $50,000 loan is now at 83% LTV

• Liquidation is likely triggered

Critical insight: SOL's volatility means you should borrow at 35–45% LTV for safety, not the maximum.

Interest Rates and Terms

Current SOL Loan Rates (2026)

Unlike Bitcoin and Ethereum, SOL lending rates vary because fewer platforms offer them:

Arch Lending Rate Tiers (Bitcoin Standard — SOL rates similar)

All Arch loans are up to 12 months, with rollover available. No credit score required.

Terms and Repayment

Most SOL loan platforms offer:

• Loan terms: Up to 12 months (Arch), with rollover available

• Interest payments: Monthly

• Principal repayment: Balloon (due at maturity) or amortizing

• Early repayment: Usually allowed without penalty

Solana-Backed Loans vs. DeFi Lending

SOL holders often face a choice: custodial lending (Arch, Figure) or DeFi lending (Solend, Marinade).

Custodial Lending (Arch Lending, Figure)

Pros:

• More predictable rates (fixed for the term at Arch)

• Professional custody and insurance

• Simpler process (no wallet management)

• Regulatory confidence (NMLS licensed)

• No smart contract risk

Cons:

• Don't control your SOL during loan term

• Custody counterparty risk (mitigated by Anchorage/qualified custodians)

• May require longer approval time

Best for: Most SOL holders; conservative borrowers who prioritize safety and rate certainty over flexibility.

DeFi Lending (Solend, Marinade)

Pros:

• Self-custody (you control your SOL)

• Composability (your SOL can be used in DeFi protocols)

• Instant approval (no KYC)

• Flexible collateral (add/remove at will)

Cons:

• Higher and more variable rates (12–20%+)

• Smart contract risk (bugs could liquidate you)

• Higher liquidation likelihood (markets move faster on-chain)

• No customer support

Best for: Technical users who want DeFi composability and can manage collateral actively.

Why Borrow Against SOL Instead of Selling

The Tax Argument

Selling SOL triggers capital gains tax. Borrowing against SOL doesn't.

Example: Selling vs. Borrowing

Scenario 1: Sell 500 SOL at $100/SOL = $50,000

• You bought at $30/SOL, so gain is $35,000

• Long-term capital gains (23.8% federal + state): ~$8,500 tax owed

• Net liquidity: $41,500

Scenario 2: Borrow against 500 SOL

• Deposit 500 SOL as collateral ($50,000 value)

• Borrow $25,000 (at 50% LTV)

• No immediate tax

• Pay ~10–12% APR depending on loan size: ~$2,500–$3,000/year interest

• Keep 500 SOL (exposure to upside)

Over 2 years:

• Scenario 1 cost: $8,500 (one-time tax)

• Scenario 2 cost: ~$5,000–$6,000 (interest for 2 years)

But the risk: if SOL drops significantly, you could be liquidated. Borrowing against SOL only makes sense if you believe SOL will maintain or increase in value.

When SOL Loans Make Sense

✅ You're bullish on Solana long-term (1–3 years)

• You believe SOL will appreciate

• Borrowing preserves your exposure

✅ You need liquidity for a short-term need

• Emergency fund, investment, business capital

✅ You want to avoid triggering taxes

• Borrowing defers capital gains indefinitely

✅ You're staking SOL and want to diversify

• Borrow against unstaked SOL

• Use proceeds to invest in non-SOL assets

When NOT to Borrow Against SOL

❌ You think SOL will crash 40%+ — liquidation risk is too high; selling is safer

❌ You can't afford the interest cost — at 10–12% APR for smaller loans, you need cash flow to cover payments

❌ You're trying to leverage trade — borrowing to buy more SOL is extremely risky; a 30% drop would trigger liquidation

❌ You're borrowing at max LTV — SOL's volatility demands conservative borrowing (35–45% LTV)

Solana Loan Platforms: 2026 Landscape

Arch Lending

Rates: APR as low as 8.49% (tiered by loan size — see table above) Origination fee: 1.49% LTV: Up to 60% (varies by collateral type) Custody: Anchorage Digital Minimum: $5,000 Collateral: BTC, ETH, SOL, XRP Regulatory: NMLS #2637200, licensed in 44 states Credit check: Not required

Pros:

• One of the few regulated platforms offering SOL loans

• Professional custody (Anchorage Digital)

• No rehypothecation (your SOL isn't lent out)

• Low minimum ($5,000)

• No credit score required

• Transparent tiered pricing

Cons:

• Rates at smaller loan sizes (11.84% APR for $5K–$250K) are higher than some alternatives

• 1.49% origination fee

Verdict: Strong choice for SOL holders who want institutional-grade custody and regulatory protection. Becomes very competitive for larger loans ($750K+).

Figure Technologies

Rates: 8.91% interest (~10% APR) LTV: 50–75% Custody: Qualified custodian Collateral: BTC, ETH, SOL Rehypothecation: No

Pros:

• Competitive rates (~10% APR)

• Up to 75% LTV (highest available for SOL)

• No rehypothecation

• Also accepts BTC and ETH

Cons:

• Less transparent rate card by loan size

• Newer lending product

• Insurance details not fully disclosed

Verdict: Good option for SOL holders who want higher LTV and competitive rates. Worth comparing with Arch for your loan size.

DeFi Options (Solend, Marinade)

Rates: 12–18%+ APY (variable) LTV: 50–75% (depends on market conditions) Custody: Self-custody

Pros:

• No minimum

• Self-custody

• Flexible terms

Cons:

• Much higher rates (50%+ more expensive than custodial options)

• Smart contract risk

• Variable rates can spike

• No customer support

Verdict: Only use if you specifically need DeFi composability and can actively manage collateral risk.

Step-by-Step: Getting a Solana Loan at Arch

Step 1: Check Eligibility

• You're in a U.S. state where Arch operates (44 states as of 2026)

• You have $5,000+ worth of SOL

• You have a valid ID and proof of residency

• You're prepared to unstake your SOL (if staking)

Step 2: Prepare Your SOL

If your SOL is currently staking:

1. Access your staking account (Marinade, Jito, validator, etc.)

2. Initiate unstaking

3. Wait 2–3 days for unstaking to complete

4. Verify your SOL is now liquid

Step 3: Apply at Arch Lending

1. Visit archlending.com

2. Click "Get a Loan" or "Apply Now"

3. Select "Solana (SOL)" as collateral

4. Enter loan amount — Arch will show your rate tier and LTV

Step 4: Identity Verification

Provide:

• Government ID (passport, driver's license)

• Proof of residency (utility bill, bank statement)

• Source of funds (for AML compliance)

No credit score required. This takes 1–3 business days.

Step 5: Custody Setup

Once approved:

1. Arch provides deposit instructions

2. You transfer your SOL to an Anchorage Digital address (not Arch's own address)

3. Anchorage confirms receipt

Step 6: Receive Funds

Once your SOL is in custody:

1. Arch wires your loan proceeds (typically USDC or USD)

2. Usually 1–2 business days

3. Funds land in your designated bank account or stablecoin wallet

Step 7: Make Monthly Payments

During the loan term:

1. Interest is due monthly

2. Principal is due at maturity (end of up to 12-month term)

3. Rollover available if you need to extend

Step 8: Repay and Recover

At maturity:

1. Transfer the principal back to Arch

2. Final interest payment is processed

3. Your SOL is released from Anchorage custody

4. You receive your SOL back in the wallet you designated

Total time: Application (3–5 days) + Custody setup (1–2 days) + Funding (1–2 days) = 5–9 days start to finish.

SOL-Specific Risks

Volatility Risk (Higher Than BTC/ETH)

SOL has historically been more volatile than Bitcoin:

• 2022: SOL crashed from $150 to $13 (91% decline)

• 2023–2024: SOL recovered but experienced 30–40% intra-year swings

• Pattern: Solana tends to move with altcoin sentiment, amplifying its volatility

Liquidation example:

• You borrow $50,000 against 1,000 SOL at $100/SOL

• SOL drops to $65/SOL (35% decline)

• Your collateral is now worth $65,000

• Your effective LTV is now 77% — unsafe territory

• Liquidation is triggered; your SOL is sold to recover the loan

Note: Arch charges a 2.5% liquidation fee.

To stay safe: Borrow at 35–45% LTV, not the maximum. This leaves a meaningful cushion for volatility.

Network Risk

Solana has experienced downtime in the past (2021, 2022), though the network has been increasingly stable. If Solana experiences an extended outage, your collateral can't be moved during the outage, but interest still accrues. Once the network recovers, normal operations resume.

Regulatory Risk

Solana's regulatory status has been debated. Some U.S. officials have questioned whether SOL is a security. New regulatory action could affect SOL lending in some jurisdictions. Arch Lending operates under NMLS licensing, which provides some protection.

Concentration Risk

Many Solana holders are ecosystem developers or early investors with concentrated positions. If there's a Solana ecosystem crisis, SOL prices could crash along with many projects simultaneously.

FAQ: Solana Loans

How is borrowing against SOL different from selling?

Selling: Immediate liquidity, triggers capital gains tax, you lose all upside exposure, final and irreversible.

Borrowing: Structured liquidity, no tax event, keep upside exposure, temporary and reversible.

What if my SOL is liquidated?

The lender sells your SOL at market rates to recover the loan balance. You keep the original loan proceeds. Any remaining collateral value after the loan is repaid is returned to you. Arch charges a 2.5% liquidation fee.

Can I repay early?

Yes. Arch allows early repayment without penalty. Early repayment saves you on future interest and recovers your SOL sooner.

Is there a minimum loan amount?

Arch requires $5,000 minimum loan size. Figure's minimums vary by collateral type. DeFi protocols generally have no minimum.

What if SOL goes up?

Your SOL appreciates in custody, but you don't benefit while the loan is active. Once you repay, you receive your SOL back — including any appreciation.

Example:

• You deposit 500 SOL worth $50,000 (at $100/SOL)

• SOL rises to $150/SOL (your 500 SOL is now worth $75,000)

• You still owe $25,000 (the loan amount)

• Once you repay, you receive your 500 SOL worth $75,000

• You've gained $25,000 in appreciation while accessing liquidity

Can I use borrowed funds to buy more SOL?

Technically yes, but not recommended. This creates leveraged exposure — if SOL drops, both your collateral and your purchased SOL lose value simultaneously, dramatically increasing liquidation risk.

What makes custodial lending better than DeFi for SOL?

Custodial lending is better for safety and rate predictability. DeFi is better for self-custody and instant access.

Conclusion

Solana-backed loans represent a growing niche in crypto lending. A year ago, there was almost nowhere to borrow against SOL at reasonable rates from a regulated platform. In 2026, Arch Lending and Figure have entered this market.

For SOL holders, the calculus is straightforward:

• If you believe SOL will appreciate or maintain value: A Solana-backed loan is a strong way to access liquidity without selling and triggering taxes.

• If you believe SOL will crash: Selling is safer.

• If you're uncertain: Borrow at conservative LTV (35–45%) to preserve your downside protection.

The key to successful Solana lending is risk management. Don't borrow at the LTV maximum. Don't leverage. Don't borrow funds for correlated purposes (buying more SOL).

Used responsibly, SOL-backed loans solve the liquidity problem for one of crypto's fastest-growing ecosystems.

Ready to explore a Solana-backed loan? Visit archlending.com for current rates and terms.

Last updated: February 18, 2026 Next review: May 2026 (rates and platform updates quarterly)

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