BlackRock and Fidelity's Solana Dilemma: A Structural Bet on Institutional Treasury Infrastructure

The institutional question is no longer about whether to enter crypto, but which infrastructure layer to build on. Multicoin Capital's Kyle Samani has framed the challenge directly, asking BlackRock and Fidelity to choose Solana. This is not a casual recommendation; it is a strategic imperative for capital allocators. Samani's ask is a call to action, urging the world's largest asset managers to treat Solana not as a speculative asset class, but as the foundational financial infrastructure layer for institutional capital.

The rationale is structural. Solana's technical profile-settlement speed of 2–3 seconds and transaction costs of approximately $0.0005-positions it to serve as a high-yield, low-cost operational backbone for corporate treasuries. This moves the conversation decisively beyond traditional finance's limitations. The network's evolution, marked by its shift from "Web3 Infrastructure for Everyone" to "Global Financial Infrastructure for Everyone", underscores this intent. It is a deliberate bet that the future of treasury management lies on-chain, leveraging a network built for scale and efficiency.

This is a capital-intensive bet on that future. The recent $1.65 billion PIPE into Forward Industries is a direct investment in Solana as that foundational layer. The capital is earmarked to initiate a Solana treasury company strategy, with the explicit goal of putting SOL to work in DeFi to generate yield. The move signals conviction that Solana's infrastructure can support the operational needs of institutional capital, transforming a speculative token into a yield-generating treasury asset. For institutional strategists, Samani's ask and this massive capital deployment represent a clear signal: the structural shift is underway, and the infrastructure for on-chain treasury management is being built now.

Why Solana? The Case for the 'Obvious' Choice

The structural case for Solana as institutional treasury infrastructure rests on three pillars: unmatched liquidity, a maturing yield layer, and the application of sophisticated financial engineering. Together, they create a compelling setup that moves beyond speculation into operational utility.

First, Solana has proven its role as a primary liquidity layer. The network processed $1.6 trillion in on-chain spot volume for 2025, a figure that surpasses the combined volumes of major centralized exchanges like Coinbase, Bybit, and Bitget. This scale is the foundation for a yield generation machine. High volume drives transaction fees, which are distributed to validators and stakers, creating a self-reinforcing cycle of sustainable yield. For a treasury operation, this means capital can move efficiently and earn fees simply by participating in the network's settlement layer.

Second, the staking economy has undergone a critical institutional transformation. The network now sees 75% of its SOL supply staked, a participation rate that signals deep conviction. Crucially, 2025 marked a turning point where native staking gained significant ground over liquid staking. This shift is structural. Institutions and long-term holders are increasingly delegating directly from self-custody, attracted by the simplicity and lower risk profile of native staking. The growth was fueled by an estimated $530 million in institutional inflows during the year. This isn't just about earning a ~6% APY; it's about securing the network while maintaining capital efficiency-a clean, compliant path to yield that aligns with treasury mandates.

Finally, institutions are applying the same sophisticated options strategies they use on traditional assets to SOL, XRP, and ETH. This is a clear signal that these assets are being treated as structured financial products, not speculative bets. As one analysis notes, institutions are applying the same options playbook they perfected on Bitcoin to altcoins, using covered calls, protective puts, and collars to generate yield and manage volatility. This institutional embrace changes the game. It reduces the assets' effective volatility, adds a layer of risk management, and redefines their role within a portfolio from pure speculation to a tool for structured return and hedging.

The bottom line is that Solana is being built as the operational backbone. Its massive liquidity, its maturing and institution-friendly staking layer, and the application of Wall Street's financial engineering toolkit collectively create a high-yield, low-friction infrastructure. For capital allocators, this is the 'obvious' choice: a network designed to handle treasury operations at scale while generating yield.

Competitive Landscape and Risk-Adjusted Returns

For institutional strategists, the choice between infrastructure layers is a calculation of yield, risk, and regulatory tailwinds. Solana's positioning here is defined by a clear structural advantage over its primary rivals, yet it carries a distinct security premium.

The most straightforward comparison is with Bitcoin. While Bitcoin remains the premier store of value, it offers zero real yield. Its return profile is purely capital appreciation, which can be volatile and uncertain. Solana, by contrast, provides a native yield stream. With 75% of its SOL supply staked, the network generates a ~6% APY for validators and stakers. This transforms SOL from a speculative asset into a potential yield-generating treasury instrument, directly competing with traditional short-duration fixed income. The structural yield advantage is compelling for capital allocators seeking to deploy idle cash.

This yield is not a free lunch, but a return for securing the network. The staking economy has matured, with institutions increasingly favoring native staking over liquid staking for its simplicity and lower counterparty risk. This shift, fueled by an estimated $530 million in institutional inflows, creates a more stable and compliant yield layer. It's a critical step toward treating SOL as a financial product, not just a speculative token.

Regulatory clarity could accelerate this transition for both Solana and Ethereum. The proposed U.S. CLARITY Act is seen as a potential catalyst that would provide the durable market-structure rules institutions need. As Bitwise's CIO notes, passage could unlock the tokenization of traditional assets and push leading blockchains toward new highs. For Solana, which has already seen spot Solana ETFs launched in the U.S., this regulatory tailwind would further legitimize its use case and improve liquidity, enhancing the risk-adjusted profile.

Yet the path is not without friction. A key risk is the network's security history. In the first half of 2025, over $250 million was stolen from Solana users, accounting for 15% of all crypto losses that period. This represents a significant trust and credit analysis hurdle. While the ecosystem has grown more sophisticated, these incidents underscore the operational and counterparty risks inherent in any on-chain treasury strategy. The high yield must be weighed against the potential for loss, a calculus that will shape the ultimate allocation.

The bottom line is one of trade-offs. Solana offers a structural yield advantage over Bitcoin and a maturing institutional framework, supported by a potential regulatory catalyst. But the security incidents introduce a tangible risk premium. For a portfolio allocation, this suggests Solana is not a simple yield substitute, but a higher-risk, higher-reward infrastructure play where the quality of the underlying security and the robustness of custody solutions will be as critical as the APY itself.

Portfolio Construction and Catalysts

For institutional portfolio managers, the Solana thesis represents a potential overweight in a high-yield, low-cost infrastructure layer. This is a structural allocation, not a tactical trade. The network's settlement speed of 2–3 seconds and minimal transaction costs create a frictionless operational backbone for treasury functions, while the 75% of its SOL supply staked provides a native yield stream. The challenge is credit analysis: the allocation must be backed by the performance and security of the underlying treasury strategies, like the $1.65 billion initiative launched by Forward Industries. The yield is only as good as the counterparty and the network's resilience.

The primary catalysts that will validate this thesis are regulatory clarity and continued institutional adoption. The proposed U.S. CLARITY Act is a major potential catalyst, as it could deliver the regulatory certainty institutions need to scale operations. Passage would provide durable market-structure rules, legitimizing tokenization and pushing leading blockchains toward new highs. Concurrently, the success of Solana-native treasury models like Forward Industries is critical. Their ability to generate consistent yield from SOL staked in DeFi will demonstrate the operational viability of the entire infrastructure play, moving it from concept to proven return.

Key watchpoints will be network security improvements and the yield generation performance of the first wave of Solana treasury companies. The network's security history, including over $250 million stolen in the first half of 2025, remains a tangible risk premium. Any material improvement in security protocols and incident response will be a positive signal. More immediately, the financial results of companies like Forward will be scrutinized. If they can deliver on their yield promises while maintaining capital preservation, it will prove the model and attract further capital. If they falter, it will highlight the execution risks and regulatory hurdles that remain.

The bottom line is that this is a conviction buy in a structural shift. The portfolio construction is about allocating to the foundational layer of on-chain finance, but it requires a disciplined approach to credit and security. The catalysts are clear, and the watchpoints are actionable. For the institutional strategist, the setup is one of high potential reward, but the path to realizing it depends on tangible progress in regulation and operational performance.