Coinbase has opened a way to borrow against staked Solana without unstaking it. In a post from its official account on July 24, the exchange said users can now borrow up to $100,000 in USDC against jitoSOL, the liquid staking token from Jito, while continuing to collect staking rewards on the underlying SOL. Borrowed funds are available instantly.
The pitch is captured in the company's own line: "Staked doesn't have to mean stuck." Until now, staking SOL directly locked the position and left holders choosing between yield and liquidity. This feature lets them keep both.
Mechanics of the new loan
jitoSOL is a receipt token. When SOL is staked through Jito, the holder receives jitoSOL that accrues value as staking rewards compound, and it stays tradable and transferable. Coinbase is accepting that token as collateral, so the SOL underneath keeps earning while the borrower draws USDC against it.
The stated ceiling is $100,000 in USDC per position, and Coinbase describes the borrowed funds as accessible immediately rather than after a settlement delay. The exchange did not publish the interest rate, loan-to-value ratio, or liquidation threshold in the announcement itself, so those terms need checking inside the product before anyone commits collateral.
Relevance for Coinbase cardholders
For anyone holding a Coinbase card, the practical hook is funding. USDC borrowed against jitoSOL can sit in a Coinbase balance and back everyday spending, which means a cardholder can cover purchases without selling SOL and triggering a taxable event or giving up a long position. The staked SOL stays staked and keeps producing yield.
That is a meaningful shift for the "spend without selling" crowd. A card linked to a stablecoin balance funded by a loan behaves differently from one that liquidates crypto at the point of sale. The trade-off is that the balance now sits on top of debt.
The liquidation risk under the convenience
Borrowing against a volatile asset carries a real downside. SOL can fall sharply, and if the collateral value drops far enough, the loan can be liquidated to protect the lender. A cardholder who has quietly been spending borrowed USDC could see the staked SOL backing that loan sold at a bad price during a drawdown.
Yield on the staked position does not cancel that risk. jitoSOL's staking rewards run in the low-to-mid single digits annually, while SOL's price can move that much in a day. The borrowing rate Coinbase charges also eats into any net benefit, so the math only works if the loan is modest relative to the collateral and the holder can add margin or repay quickly if SOL slides.
This is not the same as spending from a stablecoin balance you already hold outright. It is closer to a margin line dressed up as a convenience, and it should be treated with the same caution.
Overview
Coinbase now lets users borrow up to $100,000 in USDC against jitoSOL, keeping staking rewards on the underlying SOL and releasing the borrowed funds instantly. For cardholders, the appeal is spending liquidity without selling a long position or booking a taxable sale. The catch is liquidation risk: a loan against SOL can be called if the price drops, and Coinbase has not published the rate or loan-to-value terms in the announcement, so those need to be confirmed inside the app before pledging collateral. Used conservatively, it turns idle staked SOL into spendable USDC. Used aggressively, it is leverage.
