Solana News Today: Banks Opt for Solana's Speed in Tokenization Projects

Source: [1] title1 (url1) [2] title2 (url2) [3] title3 (url3) [4] title4 (url4) [5] title5 (url5) [6] title6 (url6) [7] title7 (url7) [8] title8 (url8) [9] title9 (url9) [10] title10 (url10) [11] title11 (url11) [12] title12 (url12)

Bitwise CIO Matthew Hougan has positioned Solana as the "new Wall Street" for stablecoins and tokenization, citing its technical advantages and growing institutional adoption. In a recent discussion with Solana Labs, Hougan emphasized that Solana's speed, throughput, and finality make it an attractive platform for financial infrastructure, particularly in the stablecoin and tokenization sectors. He noted that global financial leaders, including the SEC and BlackRock, recognize the transformative potential of these technologies, which are expected to reshape payments and securities markets .

Hougan highlighted Solana's settlement speed improvements, reducing transaction finality from 400 microseconds to 150 microseconds. This efficiency aligns with institutional trading environments where execution speed and low latency are critical. "When Wall Street audiences evaluate blockchain platforms, Solana's performance metrics make it seem extraordinarily attractive," he stated . This perspective is supported by data showing Solana's capacity to process 65,000 transactions per second (TPS), far outpacing Ethereum's 15-30 TPS, making it a viable backbone for high-frequency financial applications .

Institutional adoption of Solana's blockchain is accelerating, with major banks like HSBC and Bank of America leveraging its capabilities for tokenization projects. These institutions have opted for Solana over permissioned blockchains like Hyperledger due to its enterprise-grade throughput, cost-efficient compliance tools, and liquidity bridges connecting institutional assets with decentralized finance (DeFi) ecosystems . For example, HSBC's pilot program tokenizing short-term corporate debt instruments enables same-day repo settlements, a significant improvement over traditional T+3 timelines. Bank of America is testing tokenized Treasury bonds as collateral in DeFi protocols, utilizing Solana's 400ms block times for real-time risk monitoring .

The rise of stablecoins and tokenization on Solana is further solidifying its role in financial markets. While Ethereum dominates stablecoin supply with $172.5 billion in on-chain value (65% market share), Solana's stablecoin tokenization market share has grown to 4.7%, or $13.9 billion . Hougan argued that stablecoins and tokenization will "reinvent stock, bond, commodity, and real estate markets," a view echoed by regulators and industry leaders. Bitwise's own European-listed Solana staking ETP recorded $60 million in inflows over five days, signaling strong investor interest in the blockchain's utility .

The convergence of Solana's technical strengths and institutional demand is also reflected in the pending approval of spot Solana ETFs. Over 20 asset managers, including Bitwise, Franklin Templeton, and Fidelity, have submitted amended S-1 forms to the SEC, with approvals expected as early as mid-October 2025. The SEC's new generic listing standards have streamlined the approval process, eliminating the need for individual 19b-4 filings and accelerating regulatory clarity . Analysts project that a successful Solana ETF launch could catalyze broader altcoin ETF approvals, further integrating crypto assets into traditional financial markets .

Despite Ethereum's dominance in total value locked (TVL), Solana's institutional throughput positions it as a prime settlement layer for time-sensitive transactions. The network's upcoming upgrades, such as Firedancer in 2026, aim to push TPS beyond 1 million, enhancing its capacity to handle large-scale capital market operations . Hougan's assertion that Solana is "the new Wall Street" underscores a broader shift in financial infrastructure, where blockchain's efficiency and programmability are redefining asset management, compliance, and trading paradigms. As tokenized equities and real-world assets gain traction, Solana's role in bridging decentralized and traditional finance is poised to expand, reshaping the landscape of global capital markets .

Source: [1] title1 (url1) [2] title2 (url2) [3] title3 (url3) [4] title4 (url4) [5] title5 (url5) [6] title6 (url6) [7] title7 (url7) [8] title8 (url8) [9] title9 (url9) [10] title10 (url10) [11] title11 (url11) [12] title12 (url12)