According to reports from Kamino, Galaxy Digital's institutional USDC and USDT vaults are now live on Kamino, marking the official deployment of Galaxy Curation's institutional risk framework to Solana. This strategic move positions Galaxy to manage two lending vaults, leveraging its substantial institutional expertise and $7 billion in assets under management. The launch represents Galaxy's first deployment on the Solana network and forms part of the company's broader on-chain finance expansion strategy. The current crypto market is characterized by mixed signals, with various assets experiencing fluctuating momentum, making Galaxy's institutional entry particularly noteworthy given its substantial assets under management.
As reported by Galaxy, the company's curation team will decide which Kamino lending markets the vaults can enter, control exposure limits and monitor market conditions using the risk framework employed in its institutional lending business. Galaxy reported a $1.4 billion average loan book and 1,741 total trading counterparties during Q2, with the company ending the quarter with $7.1 billion in combined assets under management and assets under stake. The company's Global Markets business generated $49 million of adjusted gross profit during the quarter. Galaxy Curation applies an institutional risk framework to vault selection and collateral standards, giving Kamino a curation layer backed by a Nasdaq-listed digital asset firm's risk standards. Currently, Galaxy's trading volume stands at zero for the last 24 hours, suggesting thin trading activity as markets digest this development.
According to Galaxy, the USDT vault takes a more selective approach, designed to prioritize capital preservation through exposure to liquid and established Kamino lending venues, while the USDC vault permits larger collateral market exposure in pursuit of higher lending yield. Both vaults are described as moderate-risk strategies, though they have different mandates and risk profiles. Galaxy explicitly warns that both products remain exposed to market, smart-contract and liquidity risks, with the company not describing either vault as principal-protected. The practical effect will depend on how much institutional flow the vaults attract after going live, with the introduction of $USDC and $USDT vaults potentially serving as a catalyst for increased engagement from both retail and institutional players.
As reported by Kamino, the platform describes itself as Solana's largest credit platform and said it had originated more than $20 billion in loans without bad debt to lenders. The protocol reported it had processed more than $650 billion in cumulative transaction activity. Current DefiLlama data tracks Kamino Lend at approximately $1.33 billion in total value locked and just over $1 billion in active loans, with the service recording roughly $211 million in cumulative protocol fees. The platform now hosts over 80 active vaults, with security features including whitelisted reserves that restrict which assets can flow through each vault. Recent developments include Hyperithm joining as an institutional curator on June 30, 2026, launching the USDC Apex Vault with an initial yield of approximately 6.77% APY, while RockawayX has also joined the curator roster to broaden risk appetites. Binance Wallet users contributed $100M in deposits to Kamino's vault products, with cumulative aggregated deposits across Kamino vaults reaching into the hundreds of millions.
According to Galaxy, the company has been adding other Solana-based institutional products during 2026, including the SWEEP tokenized cash-management fund launched in May with State Street. Galaxy has since used Kamino in its onchain financing operations and collateral markets, with recent coverage noting that tokenized GLXY shares issued through Superstate had already been accepted as collateral on Kamino. The company has not published a target amount for deposits into either vault or a deadline for reaching specific asset levels, with both vaults already live as of the September 17 announcement. With new vaults now available, potential shifts in lending rates and liquidity provision could emerge, making it crucial to monitor how Galaxy's role as a vault curator influences lending practices on Kamino. The launch supports Kamino's growth thesis in which institutional capital reaches Solana through a recognized risk provider, with the partnership introducing new lending options that could attract more liquidity into the platform.
