Spout Raises $2M to Build 0% Stock-Backed Loans Using Solana and Covered Calls

This Thursday, it was announced that Spout closed a $2 million funding round with backing from firms such as Draper Dragon, Anchorage Digital, Flow Traders, and Solana Labs. As detailed by its co-founder and CEO, Marc Ryan, the project aims to eliminate high traditional margin rates by allowing investors to access 0% interest loans backed by tokenized stocks within the Solana network. The innovation lies in replacing direct interest with the systematic sale of out-of-the-money covered call options on the shares deposited as collateral. These weekly premiums fund yields for institutional and retail lenders without requiring the borrower to pay interest, democratizing a credit and liquidity structure historically exclusive to prime brokerage services.

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