Solana’s lending markets enter a new era: why on-chain finance is becoming a trillion-dollar reality

Solana has long been one of the most followed networks in the industry, but 2025 marks its definitive transformation: from “Ethereum killer” to an autonomous, high-performance financial ecosystem now ready for institutional capital markets.

With 400ms finality, average fees of $0.001, 12 consecutive months of 100% uptime, and a record of $35.9B in daily DEX volume, Solana now stands as one of the most robust and high-performing platforms in the entire sector.

And the next phase of its explosive growth is lending.

According to the Solana Lending Markets Report 2025 by Redstone, the network’s money markets are undergoing a structural transformation that paves the way for the first trillion-dollar DeFi ecosystem.

An Unprecedented Market Acceleration

Solana’s lending vertical reached $3.6B in TVL in December 2025, marking a 33% YoY increase compared to $2.7B the previous year.

Unlike Ethereum—dominated by Aave and other established incumbents—on Solana, lending is a hyper-competitive and constantly evolving ecosystem.

The dynamics that set it apart:

New protocols become leaders in less than six months

Capital is hypersensitive to returns, swiftly moving towards the most profitable and innovative opportunities

Builders iterate at a speed typical of Web2, not Web3

The result? One of the most dynamic lending markets in the history of DeFi.

Solana’s Most Extensive Financial Transformation

The expansion of lending reflects a broader trend: Solana is building a comprehensive financial infrastructure.

From High-Frequency Trading to On-Chain Institutional Finance

The stablecoin supply now exceeds $15B, driven by USDC/EURC and USDT. Blue-chip assets — wSOL, wETH, cbBTC — make Solana an ideal hub for leverage strategies.

2025 marked an institutional turning point:

Securitize has brought BlackRock, Apollo, and VanEck products to Solana

Ondo has accelerated the adoption of USDY and OUSG

Backed Finance has expanded its catalog of tokenized stocks (TSLAx, NVDAx, etc.)

Ecosystems like Monad and Zcash have started using Solana as a liquidity hub

This mix of crypto-native assets, RWAs, perpetuals, and stablecoin is creating a unified Internet Capital Market, entirely onchain.

The Key Players Defining Solana Lending

Kamino Lend — The Institutional Flagship

With $3.5B in TVL, Kamino is the leading lending protocol on Solana.

v2 (May 2025) introduced:

1. Market Layer (permissionless)

Instant creation of isolated markets

Customizable risk parameters

Zero bad debt since launch

14 audits + formal verification

2. Vault Layer (strategic and curated)

Managed by institutional players such as SteakhouseFi, Re7 Capital, MEV Capital, Allez Labs, etc.

Kamino integrates:

Hastra/PRIME

Securitize sACRED

Huma PST

Maple syrupUSDC (with 90% of Maple deposits routed to Kamino)

It is the preferred protocol for funds seeking transparent, systematic, and institution-grade yield.

Jupiter Lend — The fastest-growing lending protocol in Solana’s history

Launched in August 2025, it reached $1.65B in TVL within a few months.

Its Competitive Advantage:

Partnership with Fluid

Architecture with isolated vaults + rehypothecation

Key Features:

LTV up to 95%

Liquidation penalties 0.1%

Liquidation engine that closes all positions in a single transaction

Thanks to the integration within the Jupiter super-app (which controls 95% of DEX routing), Jupiter Lend offers a unique experience: borrow → swap → trade → manage, all in a single interface.

A Fierce Battle for Dominance

In December 2025, Kamino blocked the ability to refinance positions towards Jupiter. Reason? A dispute over rehypothecation and contagion risk.

Jupiter: “zero risk”

Fluid + Kamino: technical dispute

Jupiter: review → “not 100% zero”

Despite the turmoil, Jupiter recorded $13M in net inflows on December 6th.

On Solana, liquidity is the true arbiter of power.

Other Key Protocols

Drift — The High-Performance Hybrid

With its v3 (December 2025), Drift has achieved:

10× execution speed

85% of orders executed in <400ms

Integrated lending through cross-margin

Loopscale — The Pioneering Purchase Order Lender

Data:

$124.9M TVL

$40M active loans

$480M lifetime volume

Specialized in “exotic” collateral:

Token RWAs come OnRe ONyc

LP tokens

JLP/MLP

LSTs

A model reminiscent of Morpho on EVM — potentially revolutionary for institutional investors.

Save & marginfi — The First Pioneers, Now Put to the Test

Save (formerly Solend): $300M TVL

marginfi: advanced architecture, but declining in momentum

On Solana, the winner is the one who runs faster, not the one who arrives first.

Keel — Solana’s $2.5 Billion Liquidity Engine

Created by Sky Protocol (formerly MakerDAO), Keel is a capital allocator backed by USDS reserves.

Distributes liquidity towards:

Lending markets

Stablecoin liquidity

Tokenized RWAs

It is set to become the institutional heart of liquidity on Solana.

Gauntlet — Institutional Risk Steward

Manages:

$140M on Solana (Drift + Kamino)

$1.5B cross-chain

Main Contributions:

1. Delta-neutral on Drift

Combination of JLP + short perps → neutral and institutional yield

2. Curation of Kamino Vaults

USDC Prime

SOL Balanced

CASH Vault

The presence of Gauntlet makes Solana more appealing for ETFs, funds, and regulated allocators.

Why Solana is Now a Magnet for Institutional Investors

1. Monolithic Architecture

Everything in a single global state → atomic composability.

2. Predictable and Low Costs

3. Minimized MEV

4. Extreme Technical Performance

With the goal of 150ms, Solana aims to compete with HFT standards.

It’s no surprise that Visa, PayPal, Stripe, Western Union are already building on Solana.

ETF-Based Trading: A Revolutionary Yield Engine

The real innovation 2025:

ETF + futures + JitoSOL = double-digit returns, market-neutral.

JitoSOL APY ≈ 7%, double that of Ethereum. Hedging via CME futures → stable and institutional yield.

Tokenization: Solana’s Next Trillion-Dollar Bet

Solana now hosts tokenized products such as:

T-Bills

Corporate debt

Private credit

Tokenized stocks

Regulated stablecoins

Once onchain, these assets become:

Collateral

Liquidity engines

Yield generators

Leverage amplifiers

Tokenization is the key to the next trillion.

Conclusion: The Rise of Internet Capital Markets

Solana is no longer proving its worth. It is asserting it.

With:

$3.6B in lending TVL

Fierce competition

Large-scale RWAs

Institution-grade architecture

Increasing liquidity

Solana is establishing itself as the first blockchain capable of supporting true global capital markets, on-chain and institutional.

The future is already under construction. And Solana is laying the financial tracks for the internet of tomorrow.