Kamino launches ZEC-backed borrowing on Solana, letting users borrow USDC against Zcash

Kamino Finance has opened a new borrowing market on Solana that accepts ZEC, the bridged version of Zcash’s native token, as collateral. Users can now post ZEC to borrow USDC, or dial up their exposure using Kamino’s Multiply product, which loops positions to create leverage without requiring a centralized exchange.

How it works and why Kamino built it this way

Kamino routes ZEC through cross-chain bridge infrastructure, specifically NEAR Intents and OmniBridge, to bring the asset onto Solana in a form the protocol can price and custody. ZEC first became tradable on Kamino Swap, the protocol’s aggregator, in late October 2025, so this lending launch is a logical next step rather than a sudden pivot.

The ZEC market sits inside Kamino’s isolated lending architecture, where ZEC collateral risk is contained in its own pool rather than mingling with the protocol’s main liquidity. That structure lets Kamino set custom loan-to-value ratios and liquidation thresholds tuned specifically to ZEC’s volatility profile, without exposing core markets to spillover risk if ZEC experiences a sharp drawdown.

The Multiply feature automates the loop of borrowing USDC, swapping it back into ZEC, and redepositing in a single transaction. The result is amplified ZEC exposure funded by borrowed stablecoins.

Part of a bigger pattern at Kamino

The most recent comparable move was the introduction of a PAXG market on or around July 27, 2026. PAXG represents tokenized gold, so Kamino effectively allowed users to borrow USDC against a digital representation of physical gold bars. ZEC follows the same template, just with a privacy-focused cryptocurrency rather than a precious metal.

What this means for ZEC and privacy-asset DeFi

Zcash’s shielded transaction capability uses zero-knowledge proofs, but regulatory pressure around privacy coins has kept many centralized venues at arm’s length, and DeFi integration has lagged behind mainstream assets by years.

Kamino’s overall lending platform handles billions in aggregate market size across its various pools, though specific figures for the ZEC market have not yet been disclosed. No expert commentary or specific TVL data has surfaced regarding the ZEC market to date.

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