Solana’s Speed Positions It for Wall Street Stablecoin Dominance
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Solana is gaining significant attention from traditional finance, with Bitwise's CIO, Matt Hougan, suggesting it could become Wall Street's preferred network for stablecoins and tokenized real-world assets. The core technology driving this interest is Solana's exceptional transaction speed and finality, which are critical for institutional traders requiring rapid settlement. Hougan highlights a notable improvement in settlement times, from approximately 400 microseconds to about 150 microseconds, as a key technical advantage.
While Solana's technical performance is compelling, its current market share in stablecoins is still modest. With a stablecoin supply of nearly $14 billion, it accounts for roughly 4.5% of the on-chain stablecoin market. This contrasts sharply with Ethereum, which commands about $173 billion (nearly 60%), extending to 65% when layer-two networks are included. Critics from the Ethereum Virtual Machine (EVM) ecosystem, like Offchain Labs' AJ Warner, argue that the EVM environment's established developer tools and extensive integrations still make it the go-to for new stablecoin launches, appealing to traditional finance's preference for proven systems.
Despite Ethereum's current dominance and the cautious stance of some traditional finance entities, firms like Bitwise are actively exploring both ecosystems. Bitwise already operates a Physical Solana ETP, signaling a belief in Solana's long-term potential for institutional investors. Solana's rapid performance evolution from an experimental network positions it to potentially reshape how major financial players handle money, particularly through its efficiency for high-volume, real-time transactions that appeal directly to the demands of Wall Street.
(Source: https://bitcoinist.com/solana-could-soon-rule-wall-streets-stablecoin-market-bitwise-cio/)
