Bitwise CIO Matt Hougan believes Solana will become Wall Street's preferred blockchain for stablecoins and tokenization. Speaking with Solana Labs' Akshay Rajan on Oct. 2, Hougan described the network as the new institutional standard.
Financial leaders are increasingly recognizing stablecoins and tokenization as transformative technologies. Hougan noted that heads of major institutions signal that these digital assets could fundamentally reshape payments and securities markets.
Solana's settlement speeds have improved from 400 microseconds to 150 microseconds. This technical capability makes it extraordinarily attractive when institutions evaluate blockchain platforms, according to Hougan, who said the speed aligns with how Wall Street prefers to trade.
Ethereum currently dominates the stablecoin market with $172.5 billion in on‑chain value, commanding 59% of market share. When including layer‑2 networks like Arbitrum, Base, and Polygon, Ethereum's share rises to 65%.
Solana hosts $13.9 billion in stablecoins, representing a 4.7% market share. Offchain Labs' Chief Strategic Officer AJ Warner argued that total value locked indicates Ethereum's EVM ecosystem remains the superior venue for launching stablecoin projects.
Bitwise CEO Hunter Horsley suggested Solana may gain an edge in the staking ETF market. The network's faster unstaking period could prove crucial since ETFs need to return assets on very short timeframes, creating challenges for competitors.
The Bitwise Physical Solana ETP currently manages $30 million in assets. The firm has a spot Solana ETF awaiting SEC approval, with a final decision expected by Oct. 16.
Several major asset managers, including Fidelity and Franklin Templeton, have submitted updated S‑1 filings for spot Solana ETFs. ETF analyst Nate Geraci expects approvals could come by mid‑October, calling it a pivotal month for digital asset products.