Jito Foundation, the organization that oversees ecosystem growth and adoption of Jito protocols under the direction of the Jito DAO,  announced that Jito Staked Solana JitoSOL will now be accepted as collateral by FalconX, the largest institutional digital asset prime brokerage. In addition, FalconX will provide secure custody for JitoSOL, allowing its institutional clients to optimize interactions with Solana staking economy.

FalconX clients can now use JitoSOL as collateral for over the counter spot, derivatives, and borrowing activities. Earning passive SOL yield on collateral unlocks a new frontier of trading strategies for institutional clients. By enabling institutions to integrate Solana staking rewards with trading strategies through JitoSOL, FalconX offers an innovative approach to leveraging JitoSOL for trading while retaining liquidity and optimizing capital efficiency. The addition of JitoSOL highlights the value that liquid staking brings to institutions and demonstrates how digital assets can transform institutional finance.

FalconX inclusion of JitoSOL as trading collateral highlights an exciting new use case for JitoSOL and the broader Jito infrastructure, said Brian Smith, Head of the Jito Foundation. For Solana to achieve global adoption, institutions need seamless ways to secure the network while retaining access to their trading collateral. By integrating JitoSOL, FalconX is setting a new standard for institutional participation, driving adoption, and showcasing how the Jito and Solana ecosystems can power the future of decentralized finance.

JitoSOL addresses the challenges faced by traditional SOL holders by providing a way to combine yield generation with trading flexibility without requiring tokens to be locked up. It serves as a tangible asset that institutions can leverage for a variety of investment opportunities while also earning staking rewards that are greater than those earned through traditional staking methods. Unlike traditional SOL, which experiences daily dilution without staking yield, JitoSOL combines liquidity with the benefit of passive yield and MEV fees, resulting in higher overall returns for holders.

FalconX is proud to be the first and only prime brokerage offering institutional investors the ability to use JitoSOL as collateral for trading, said Connor Siwik, US Spot Trading Lead at FalconX. Jito innovation aligns with our mission to empower institutional investors with cutting edge tools and liquidity solutions. Integrating JitoSOL advances our goal of creating capital efficient solutions for our clients, who can now access MEV boosted staking rewards while maintaining trading flexibility.