TLDR
- Bitwise CIO Matt Hougan states that Solana is becoming the preferred network for Wall Street stablecoins and tokenization.
- He explains that Wall Street investors see stablecoins and tokenization as major innovations in financial markets.
- Hougan says that Solana’s speed, throughput, and finality make it highly attractive to institutional investors.
- Stablecoin supply on Solana has reached $13.9 billion, capturing a growing market share.
- Bitwise has launched a Physical Solana ETP and is awaiting SEC approval for a spot Solana ETF.
Solana is gaining ground among financial institutions as Bitwise CIO Matt Hougan confirms its growing dominance in tokenization and payments. Hougan emphasized Solana’s appeal to traditional investors due to its speed, finality, and scalability. As Wall Street eyes blockchain investments, Bitwise CIO insists Solana fits the institutional mold better than other platforms.
Solana Gains Institutional Support, Says Bitwise CIO
Bitwise CIO Matt Hougan claimed Solana is “the new Wall Street” network for stablecoins and real-world asset tokenization. Speaking with Solana Foundation’s Akshay BD on Oct. 2, Hougan stressed Wall Street’s focus on practicality. He noted investors struggle to relate to Bitcoin, calling it “very ephemeral” and abstract.
According to Bitwise CIO, institutional players recognize the potential in stablecoins and asset tokenization. “They know it’s going to be enormously significant,” he stated. Hougan also said stablecoins will change payments, while tokenization will disrupt traditional asset markets.
https://x.com/Matt_Hougan/status/1974471208751276072
He argued that when institutions evaluate blockchain options, Solana stands out. “The speed, the throughput, the finality of Solana make it seem extraordinarily attractive,” said the Bitwise CIO. These traits match the operational needs of financial firms.
Solana’s Settlement Speed Boosts Its Appeal
Solana has significantly reduced settlement times from 400 to 150 microseconds, according to the Bitwise CIO. This improvement aligns with Wall Street’s demand for fast, reliable transaction finality. Hougan emphasized that speed matters for firms accustomed to low-latency trading systems.
Stablecoin growth on Solana reflects its increasing adoption, with $13.9 billion in circulation, accounting for 4.7% of the market. However, Ethereum still dominates, with $172.5 billion and a 59% market share, expanding to 65% with the addition of layer-2s.
Even with a smaller share, Solana’s infrastructure attracts attention. Offchain Labs’ AJ Warner acknowledged Solana’s progress, but still pointed to Ethereum’s EVM as the preferred environment for stablecoin launches. Nevertheless, the Bitwise CIO believes Solana’s momentum cannot be ignored.
Bitwise Expands Solana Offerings and Highlights ETF Advantage
Bitwise CIO continues to promote Solana, joining Bitwise CEO Hunter Horsley in highlighting the ETF benefits of Solana. At Token2049, Horsley noted Solana’s fast unstaking process as ideal for ETF structures. This design supports faster liquidity, crucial for ETF investors.
Bitwise offers the Physical Solana ETP, backed by SOL and held with institutional-grade custody. However, it has only $30 million in assets under management, which is far below that of Bitcoin or Ether-based ETFs. Despite this, Bitwise CIO maintains strong confidence in Solana’s future.
A spot Solana ETF from Bitwise remains in the SEC’s queue, with a decision expected on Oct. 16. Bitwise CIO continues to push for approval, asserting Solana’s structural advantages. At press time, Solana traded at $227, down 2% for the day and 22% from its January peak.
