Solana Revolutionizes Tokenization as Wall Street’s Successor
Matt Hougan, the Chief Investment Officer of Bitwise, believes that Solana could emerge as the preferred network for Wall Street regarding stablecoins and real-world asset tokenization. During a discussion with Akshay Rajan from Solana Labs on October 2, he emphasized that traditional finance views Bitcoin as “ephemeral” and challenging to understand. In contrast, the potential of stablecoins and the tokenization of various assets is seen as pivotal.
Solana: The Future of Tokenization
According to Hougan, significant industry figures are predicting that stablecoins could revolutionize payments, while tokenization may transform stock, bond, commodity, and real estate markets. He asserted that blockchain investment opportunities lie here, particularly highlighting Solana’s speed and efficiency. The settlement speed has improved significantly from 400 microseconds to just 150 microseconds, aligning with Wall Street’s trading preferences.
Stablecoin Market Overview
As it stands, Solana’s growth in the stablecoin market is noteworthy. Its stablecoin supply has reached $13.9 billion, giving it a market share of 4.7% in tokenization. Although this is a fraction of Ethereum’s dominance, marked by $172.5 billion in stablecoin value and a market share of 59%, the significance of Solana’s advancements cannot be overlooked. When considering Ethereum’s layer-2 networks, the share of Ethereum rises to 65%.
Comparative Analysis
- Solana Stablecoin Value: $13.9 billion
- Solana Market Share: 4.7%
- Ethereum Stablecoin Value: $172.5 billion
- Ethereum Market Share: 59%, increasing to 65% with layer-2 networks
AJ Warner, Chief Strategic Officer at Offchain Labs, commented on the varying total value locked (TVL) between Solana and Ethereum. He acknowledged that while TVL might not be the defining metric, it clarifies where new stablecoins are most effectively launched. According to him, the Ethereum Virtual Machine (EVM) remains the preferable framework.
Bitwise’s Position on Solana
This endorsement of Solana is not new for Bitwise. CEO Hunter Horsley recently suggested that Solana’s design could provide a competitive advantage over Ethereum in the staking exchange-traded fund (ETF) market. The quicker unstaking period of Solana is crucial for ETFs, which must provide quicker asset returns.
Bitwise offers the Bitwise Physical Solana ETP, allowing institutional investors to gain exposure to Solana through a secure custody structure. However, this fund has seen limited interest compared to Bitcoin or Ethereum ETFs, with only $30 million in assets under management. Currently, a Solana spot ETF is awaiting SEC approval, with a decision expected by October 16.
As of now, SOL is trading at approximately $227, and despite a recent decline of 2%, it remains 22% below its all-time high achieved in January 2025.
