Bitwise Executive Sees Solana as Wall Street’s Blockchain of Choice
According to Bitwise CIO Matt Hougan, Solana is poised to emerge as Wall Street’s favored network for stablecoins and tokenization. During a conversation with Akshay BD from the Solana Foundation on October 2, Hougan confidently stated, “Solana is the new Wall Street.”
He noted that audiences from traditional finance frequently perceive Bitcoin as “ephemeral” and challenging to comprehend on a conceptual level. On the other hand, stablecoins and tokenization showcase real innovations, which facilitate a clearer understanding for institutions.
Source: Ria Channel
Stablecoins and Tokenization Are Seen as Transformative Forces
Hougan emphasized that significant financial entities are now acknowledging the transformative potential of stablecoins in reshaping global payment systems completely. He highlighted how tokenization is transforming the stock, bond, commodity, and real estate markets by utilizing blockchain technology.
Institutional investors are progressively turning to blockchain networks as catalysts for significant transformations in financial infrastructure. In assessing various choices, the distinctive blend of throughput, speed, and finality offered by Solana is particularly appealing.
Solana’s Settlement Speed Improvements Strengthen Its Appeal
Hougan notes that Solana’s settlement speed has seen a significant enhancement, decreasing from 400 microseconds to merely 150 microseconds. This degree of efficiency reflects the speed at which conventional Wall Street traders like to function in rapid market conditions.
The recent technical advancements are in harmony with the performance expectations of institutions regarding blockchain infrastructure, leading to a notable decrease in adoption friction. For institutional investors, Solana’s technological superiority offers a tangible benefit when carrying out high-frequency stablecoin transactions.
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Ethereum Still Dominates the Stablecoin Landscape for Now
Even with Solana’s progress, Ethereum remains the dominant force in the stablecoin and tokenization market. Solana’s stablecoin supply, totaling $13.9 billion, accounts for 4.7% of the market, significantly overshadowed by Ethereum’s impressive $172.5 billion on-chain total.
With the inclusion of Ethereum Layer-2 networks such as Arbitrum, Base, and Polygon, the dominance of Ethereum’s stablecoins rises to an impressive 65%. Professionals contend that Ethereum’s well-established ecosystem continues to provide unparalleled infrastructure depth for the introduction of new tokenized assets.
Bitwise Continues Publicly Backing Solana’s Long-Term Potential
Bitwise executives have previously demonstrated significant confidence in the competitive advantages that Solana may offer. During Token2049 in Singapore, Bitwise CEO Hunter Horsley highlighted the advantages of Solana’s design for the adoption of ETFs in the market.
He observed that Solana’s rapid unstaking period provides benefits for staking ETFs, which necessitate swift liquidity turnaround times. On the other hand, the extended unstaking process of Ethereum could be less effective for ETF products that need quick redemptions.
Regulatory Decisions Loom Over Solana ETF Ambitions
Bitwise currently manages the Bitwise Physical Solana ETP, providing investors with direct access to SOL via custodial frameworks. Currently, the product holds only $30 million in assets, falling behind BTC and ETH ETFs in terms of institutional investor interest.
The Solana ETF is currently pending SEC approval, with a significant decision anticipated on October 16 of this year. The approval may signify a crucial turning point for Solana’s path in the institutional realm, connecting conventional markets with blockchain infrastructure.
Solana Holds Strong Institutional Interest Despite 22% Decline
Solana is currently priced at approximately $227, reflecting a 2% decline for the day and standing 22% lower than its peak price levels from January 2025. Even with the recent pullback, the discussions among institutions about speed, throughput, and tokenization persist in driving a positive outlook.
Bitwise’s endorsement underscores Solana’s strategic positioning at the crossroads of finance and technology. Although Ethereum continues to lead the market, Solana’s technological advantages and potential for ETF integration could hasten its acceptance among Wall Street institutions.
