Institutional Adoption of Solana Through Treasury Strategies: Why Solana Is Becoming the Preferred Blockchain for Institutional Capital

In 2025, institutional capital is increasingly allocating to blockchain treasuries, with Solana (SOL) emerging as a dominant force. Public companies now hold approximately 5.9 million SOL in corporate treasuries—1% of the circulating supply—valued at $765 million [1]. This trend is driven by Solana’s technical superiority, institutional-grade staking yields, and strategic partnerships, positioning it as a preferred infrastructure for institutional capital.

Technical Advantages: Speed, Cost, and Scalability

Solana’s architecture is engineered for high-performance use cases. It processes 65,000 transactions per second (TPS) with sub-penny fees, outpacing Ethereum’s 15 TPS and volatile gas costs [1]. Daily transaction volume on Solana hit 162 million in Q1 2025, capturing 44% of total blockchain activity, largely from decentralized finance (DeFi) and memecoin trading [6]. These metrics are critical for institutions seeking scalable solutions for tokenized real-world assets (RWAs) and high-frequency trading.

The Alpenglow consensus upgrade in 2025 further reduced validator costs and improved network efficiency, enhancing Solana’s appeal for institutional-grade infrastructure [1]. Innovations like Firedancer, which aims to cut transaction finality to 100–150 milliseconds, underscore Solana’s commitment to real-time processing [2].

Treasury Strategies: Staking Yields and Capital Efficiency

Institutional investors are leveraging Solana’s staking ecosystem to generate returns. With 67% of its supply staked and yields at 6.6% annually, Solana outperforms Ethereum’s 30% staked supply and 2.8% yield [6]. Firms like Forward Industries raised $1.65 billion to establish Solana-focused treasuries, deploying capital through staking and DeFi protocols to maximize on-chain returns [4].

The appeal is clear: staking-enabled ETFs like the $2.1 billion SSK ETF offer 7.3–7.45% yields, attracting capital from yield-focused investors [2]. This contrasts with Bitcoin’s passive holding model, where institutions earn no yield on their holdings.

Regulatory Tailwinds and Institutional Partnerships

Regulatory developments are accelerating adoption. The proposed GENIUS Act and ETF approvals, including amendments by Franklin Templeton and Grayscale to include staking provisions, signal growing institutional legitimacy [1]. Analysts project $5–8 billion in inflows if Solana ETFs are approved by October 2025 [2].

Strategic partnerships with Visa, Stripe, and PayPal, alongside collaborations with R3 for RWA tokenization, further cement Solana’s institutional credibility [1]. BlackRock and R3 have integrated Solana for enterprise blockchain solutions, while Shopify’s adoption of Solana Pay highlights its real-world utility [5].

Comparative Edge: Solana vs. Ethereum

While Ethereum’s Pectra upgrade and Layer-2 solutions improve its scalability, Solana’s focus on speed and cost efficiency creates a complementary dynamic. Ethereum dominates in institutional DeFi and RWA tokenization, but Solana’s 75% quality transaction rate (vs. Ethereum’s 39%) and 7 million daily active users in June 2025 [3] highlight its mass-market appeal.

Institutions are adopting multi-chain strategies, using Solana for high-volume, low-cost applications and Ethereum for secure, high-value transactions. This bifurcation allows investors to optimize exposure to different segments of the crypto market [6].

Challenges and the Road Ahead

Despite its momentum, Solana faces challenges. Regulatory uncertainty and liquidity risks persist, as seen in a recent $1 billion outflow [6]. However, its deflationary tokenomics—projected to stabilize at 1.5% annual supply growth by 2027—offer long-term appeal [1].

Institutional confidence remains strong. Franklin Templeton’s CEO has labeled Solana “one of the first institutionally focused chains,” and 91% approval odds for SOL ETFs in 2025 suggest continued inflows [1].

Conclusion

Solana’s technical prowess, institutional-grade staking yields, and regulatory progress make it a cornerstone for institutional treasuries. As corporations and asset managers seek scalable, high-return blockchain solutions, Solana’s ecosystem—anchored by DeFi, RWA tokenization, and strategic partnerships—is reshaping the institutional crypto landscape. While challenges remain, the trajectory is clear: Solana is not just a competitor but a collaborator in the next phase of institutional adoption.

Source:
[1] Solana Treasuries: Driving Institutional Adoption in 2025? [https://phemex.com/blogs/solana-treasuries-institutional-adoption-2025]
[2] Solana ETF: What You Need to Know About Approval ..., [https://www.okx.com/en-us/learn/solana-etf-approval-institutional-adoption]
[3] Mid-year momentum: What are Ethereum and Solana up to? [https://www.21shares.com/en-eu/research/mid-year-momentum-what-are-ethereum-and-solana-up-to]
[4] $1.65B to Launch Solana Treasury, Shares Jump 128% [https://ventureburn.com/forward-industries-billion-dollar-solana-treasury/]
[5] Solana Is Outperforming Bitcoin and Ethereum: Here's Why [https://www.mexc.co/fil-PH/news/solana-is-outperforming-bitcoin-and-ethereum-heres-why/78107]
[6] Solana vs Ethereum: Blockchain Performance Analysis [https://flipsidecrypto.xyz/chat/api/artifacts/solana-vs-ethereum-blockchain-performance-analysis-xzn21jz0]