Kamino Finance Launches ZEC-Backed Borrowing on Solana

Kamino Finance has introduced a new borrowing market on the Solana blockchain that allows users to borrow USDC by using ZEC, the bridged version of Zcash’s native token, as collateral. This initiative is part of Kamino's broader strategy to incorporate non-native and real-world assets into its lending protocol. Users can leverage their ZEC holdings through Kamino's Multiply product, which enables them to amplify their exposure without the need for a centralized exchange.

The process involves routing ZEC through cross-chain bridge infrastructure, specifically NEAR Intents and OmniBridge, to facilitate its use on Solana. ZEC became tradable on Kamino Swap, the protocol's aggregator, in late October 2025, making this lending launch a logical progression rather than an abrupt change in direction. The ZEC market operates within Kamino’s isolated lending architecture, which contains collateral risk in its own pool, allowing for tailored loan-to-value ratios and liquidation thresholds based on ZEC's volatility.

Kamino's recent move follows the introduction of a PAXG market in late July 2026, which allowed users to borrow USDC against tokenized gold. The addition of ZEC, a privacy-focused cryptocurrency, marks a significant step in integrating privacy assets into decentralized finance (DeFi), an area that has lagged behind mainstream assets due to regulatory pressures surrounding privacy coins. While Kamino's overall lending platform manages billions in aggregate market size, specific figures for the ZEC market have yet to be disclosed.

© 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: KLEA News