|
Getting your Trinity Audio player ready...
|
- Bitwise CIO says Solana’s speed and finality attract institutional interest.
- Ethereum still leads in stablecoins, but Solana’s share is rising.
- Bitwise’s spot Solana ETF decision from the SEC is expected October 16.
Bitwise Chief Investment Officer Matt Hougan believes Solana is poised to become Wall Street’s go-to blockchain for stablecoins and real-world asset (RWA) tokenization. Speaking with Solana Labs’ Akshay Rajan on October 2, Hougan said institutional players are increasingly drawn to Solana’s exceptional speed and transaction finality — features that align with how traditional markets operate.
“When Wall Street looks at blockchains, they see Solana’s speed — from 400 microseconds to just 150 microseconds in settlement — and it makes sense to them,” Hougan explained. “That’s how they like to trade.” He added that while Bitcoin remains “ephemeral” to many in finance, stablecoins and tokenization represent tangible, transformative opportunities that will redefine global payments and financial markets.
Ethereum Still Dominates — For Now
Despite Solana’s growing momentum, Ethereum remains the clear leader in the stablecoin sector. Data from RWA.xyz shows Ethereum hosts roughly $172.5 billion in stablecoins, commanding a 59% market share — rising to 65% when layer-2 networks such as Arbitrum, Base, and Polygon are included. Solana’s $13.9 billion stablecoin supply gives it a modest 4.7% slice of the market.
Offchain Labs’ AJ Warner emphasized Ethereum’s entrenched position, noting that “TVL isn’t everything, but if you’re launching a new stablecoin, the EVM remains the best place to build.”
Also Read: Solana Liquidity Surges as $SOL Eyes Major Breakout
Bitwise’s Growing Bet on Solana
Bitwise’s bullish stance on Solana is not new. CEO Hunter Horsley recently told Cointelegraph that Solana could outperform Ethereum in the staking ETF race, thanks to its faster unstaking process — a key feature for funds that must redeem assets quickly.
Bitwise already operates the Bitwise Physical Solana ETP, with $30 million in assets under management. The firm also awaits SEC approval for a spot Solana ETF, with a final decision expected on October 16.
At press time, SOL traded at $227, down 2% on the day and roughly 22% below its January 2025 peak.
Solana’s Institutional Moment Approaches
While Ethereum remains the dominant force, Solana’s speed and scalability are increasingly resonating with institutional investors. If Bitwise’s vision plays out, Wall Street’s next generation of tokenized assets — from bonds to real estate — may well be built on Solana’s rails.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
