Institutions Stake 2.75% Solana Supply via UAE Infrastructure, Eyeing Yields

In the third week of September 2025, institutional and corporate actors significantly increased their exposure to Solana (SOL)-related assets, with Solmate, a newly launched Solana-focused digital asset treasury, raising $300 million to build on-chain infrastructure and staking operations in the UAEtitle1^[1]. The initiative, led by former Kraken executive Marco Santori as CEO, involves deploying bare-metal validators in Abu Dhabi to optimize staking efficiency. Backers include ARK Invest, RockawayX, and the Solana Foundation, which provided preferential access to SOL tokens at discounted pricestitle2^[2]. This move aligns with growing institutional interest in Solana’s high-performance blockchain, which processes more transactions and generates higher on-chain revenue than many competitorstitle3^[3].

Corporate treasuries have amassed over 15.8 million SOL, valued at approximately $4 billion, representing 2.75% of the circulating supplytitle4^[4]. Strategic Solana Reserve data highlights this accumulation, driven by firms seeking to leverage Solana’s proof-of-stake model for yield generation. Analysts like Rekt Capital note that Solana has breached key technical resistance levels, with the $238 threshold now acting as supporttitle1^[1]. KALEO, another trader, suggests that a sustained break above this level could position SOL for a potential $1,000 price target, though no timeline is providedtitle1^[1].

Solmate’s infrastructure strategy includes partnerships with UAE regulators, such as the Virtual Assets Regulatory Authority (VARA), to ensure compliance while maximizing staking returns. The company’s approach contrasts with passive token holding, emphasizing validator operations and institutional-grade infrastructuretitle2^[2]. This model mirrors broader trends in Solana treasury strategies, where firms like Upexi and DeFi Development Corp. (DFDV) have adopted similar frameworks. Upexi, for instance, stakes nearly all of its 2 million SOL holdings, generating approximately $65,000 in daily staking rewardstitle5^[5]. DFDV integrates liquid staking tokens (LSTs) to maintain liquidity while compounding yields, achieving around 12% annualized returnstitle5^[5].

The surge in Solana treasury activity is further supported by regulatory clarity in the UAE and expanding DeFi ecosystems. Companies like Sharps Technology and Forward Industries have secured large capital raises—$1.65 billion and $400 million, respectively—to fund SOL acquisitions and validator deploymentstitle5^[5]. These efforts reflect a shift from Bitcoin-centric treasuries to multi-layered strategies combining price exposure, staking yields, and infrastructure participation. Forward Industries, now the largest Solana treasury holder with 6.8 million SOL, has diversified into lending and DeFi activities to amplify returnstitle5^[5].

Market dynamics indicate a maturing institutional landscape. While Solana’s staking yields (6-8% annually) attract capital, challenges remain, including validator slashing risks and regulatory uncertaintiestitle5^[5]. The Financial Accounting Standards Board’s (FASB) 2023 rule requiring crypto assets to be marked to market introduces quarterly earnings volatility for firms holding SOL. Additionally, limited hedging tools compared to Bitcoin and Ethereum leave treasuries more exposed to price swingstitle5^[5]. Despite these risks, the trend underscores confidence in Solana’s scalability and developer ecosystem, with projects like BlackRock’s BUIDL fund and Franklin Templeton’s BENJI fund anchoring institutional credibilitytitle5^[5].