EU's Digital Euro and Blockchain Selection: Ethereum and Solana as Strategic Infrastructure Plays

The European Union's digital euro project has entered a pivotal phase, with the European Central Bank (ECB) evaluating public blockchains like Ethereum and Solana as potential infrastructure for its central bank digital currency (CBDC). This shift from private, permissioned systems to open, decentralized networks signals a strategic redefinition of institutional-grade blockchain adoption. For investors, the implications are profound: Ethereum and Solana could emerge as foundational layers for a digital euro, unlocking billions in capital for infrastructure providers, privacy protocols, and cross-chain tools.

Ethereum: The DeFi-Ready Foundation

Ethereum's mature smart contract ecosystem and robust DeFi integration position it as a strong contender for the digital euro. The blockchain's post-Merge energy efficiency and partnerships with firms like Chainlink and ConsenSys further validate its institutional-grade capabilities. Ethereum's Layer-2 solutions, such as ZK-Rollups, are being evaluated to address scalability and privacy concerns under GDPR. While Ethereum's current throughput (15–45 TPS with Layer-2) may lag behind Solana's performance, its programmable money framework and existing institutional adoption—such as the European Investment Bank's 2021 €100 million digital bond—make it a compelling choice.

However, Ethereum's scalability limitations remain a hurdle. If the ECB prioritizes high-throughput use cases, Ethereum may need to adopt advanced Layer-2 solutions like StarkWare or zkSync. Investors should monitor Ethereum-based infrastructure providers such as Infura and Alchemy, which could see increased demand for smart contract execution and data verification.

Solana: The High-Performance Contender

Solana's 65,000 TPS throughput and sub-cent transaction fees make it an ideal candidate for retail-scale adoption and real-time settlements. Its modular architecture allows for permissioned layers to isolate sensitive data, aligning with the ECB's privacy requirements. Solana's rapid growth in tokenized real-world assets (RWA)—reaching $553.8 million in 2025—further underscores its institutional appeal. Partnerships with BlackRock and Franklin Templeton highlight its viability for tokenized treasuries and real estate.

Despite its performance advantages, Solana's ecosystem is less mature than Ethereum's, and its privacy solutions are still under development. Investors should focus on Solana's validator network activity and enterprise partnerships, which could surge if the ECB selects it as the primary infrastructure provider. The recent approval of the REX-Osprey SOL + Staking ETF (SSK) in July 2025, with $316 million in inflows, signals growing institutional confidence.

Institutional Implications and Market Projections

The ECB's decision to adopt a public blockchain-based digital euro would redefine CBDCs as programmable, interoperable assets, challenging U.S. stablecoin dominance and reshaping global financial sovereignty. Institutional investment is shifting from speculative trading to strategic infrastructure deployment, with three key areas emerging:

1. Layer-2 and Scaling Solutions: Ethereum's ZK-Rollups and Solana's native architecture will be critical for handling the digital euro's transaction load.
2. Privacy and Compliance Tools: Protocols like Aztec (Ethereum) and Solana's modular privacy layers will reconcile public blockchain transparency with EU data laws.
3. Cross-Chain Interoperability: Projects like Wormhole (Solana) and Polkadot's XCMP protocol could facilitate the digital euro's integration with global DeFi and tokenized assets.

Market projections suggest the ECB's October 2025 decision will act as a catalyst for infrastructure providers. Ethereum-based DEXs already process $24.5 billion in monthly volume, while Solana's institutional traction has surged. Investors should prioritize companies and protocols directly involved in scaling, privacy, and cross-chain solutions.

Geopolitical and Investment Outlook

A digital euro on Ethereum or Solana would assert European financial sovereignty, countering the dominance of U.S. dollar-backed stablecoins (which handle 98% of the $288 billion stablecoin market). This shift could trigger a global transition toward open, decentralized infrastructure for sovereign digital currencies, with implications for cross-border payments and tokenized assets.

For investors, the ECB's October 2025 decision is a critical inflection point. The adoption of Ethereum or Solana would validate public blockchains as foundational layers for institutional finance, unlocking billions in capital for infrastructure, privacy, and cross-chain tools. Strategic positions in Ethereum's Layer-2 ecosystem, Solana's RWA tokenization, and cross-chain interoperability protocols could yield outsized returns as the digital euro project progresses.

In conclusion, the EU's digital euro project represents a paradigm shift in blockchain adoption. By leveraging Ethereum and Solana, the ECB could redefine CBDCs as open, interoperable assets, reshaping the future of digital finance. Investors who align with this vision stand to benefit from a transformative era in institutional-grade blockchain infrastructure.