Bitwise exec predicts Solana will become Wall Street’s preferred stablecoin network

Bitwise executives are positioning Solana as the future institutional blockchain for stablecoins and real-world asset (RWA) tokenization, citing its superior speed, throughput, and faster unstaking periods as critical advantages over Ethereum for Wall Street's trading and ETF liquidity requirements. While Solana currently holds a 4.7% stablecoin market share compared to Ethereum's dominant 59%, Bitwise has a Physical Solana ETP with $30 million in assets under management and awaits SEC approval for a spot Solana ETF, with a decision due October 16th, underscoring their conviction in its institutional potential.

Analysis

Chief investment officer of crypto asset management firm Bitwise, Matt Hougan, thinks Solana will be the Wall Street network of choice for stablecoins and real-world asset tokenization. “I think Solana is the new Wall Street,” said Hougan, speaking with Solana Labs’ Akshay Rajan on Oct. 2. He added that the Wall Street audiences consider Bitcoin (BTC) “very ephemeral” and “hard to get their heads around.” They can see what is happening in the stablecoin and tokenization space, and they know that it is going to be “enormously significant,” he said before adding, “Really important people are saying that stablecoins will reinvent payments and tokenization will reinvent stock, bond, commodity, and real estate markets.” When they look at how to invest, the answer is in the blockchain space, and when they evaluate the blockchain space, “the speed, the throughput, the finality of Solana makes it seem extraordinarily attractive.” Hougan cited improvements from 400 microseconds to 150 microseconds in settlement speed, saying that this makes sense to them because that’s how they like to trade. Ethereum is still stablecoin king Stablecoin supplies on Solana have grown to $13.9 billion, giving it a stablecoin tokenization market share of 4.7%, according to RWA.xyz. It is still a minnow compared to industry leader Ethereum (ETH), which has $172.5 billion in onchain stablecoin value and a commanding market share of 59%. This increases to 65% when Ethereum layer-2 networks such as Arbitrum, Base, and Polygon are included. Offchain Labs’ Chief Strategic Officer, AJ Warner, compared Solana and Ethereum total value locked on Saturday, stating, “TVL is definitely not everything, but I don’t think you can doubt where the best place to launch new stablecoins is. Build within the EVM.” Bitwise big on Solana It is not the first time Bitwise executives have hyped up Solana (SOL). Speaking with Cointelegraph at Token2049 in Singapore last week, Bitwise CEO Hunter Horsley said that Solana may gain an edge over Ethereum in the staking exchange-traded fund (ETF) market, citing its design as more favorable for investors. He said that Solana’s unstaking period is much faster than Ethereum’s, which is important because “ETFs need to be able to return assets on a very short time frame. So this is a huge challenge.” Related: Can Solana rival Wall Street? Kyle Samani thinks so Bitwise Solana ETF decision due soon The company offers a fund called the Bitwise Physical Solana ETP that provides investors with exposure to SOL through a fully backed, physically held structure with institutional-grade custody. Interest has been muted in comparison to BTC or Ether-based ETFs, with just $30 million in assets under management, according to Bitwise. The firm also has a spot Solana ETF waiting in the SEC approval queue with the final decision due on Oct. 16. SOL prices were trading down 2% on the day at $227 at the time of writing. The asset remains down more than 22% from its January 2025 all-time high. Magazine: Hong Kong isn’t the loophole Chinese crypto firms think it is Bitwise's Chief Investment Officer is promoting a bullish thesis for Solana, positioning it as the preferred blockchain for institutional finance, specifically for stablecoins and real-world asset (RWA) tokenization. The argument hinges on Solana's technical advantages, such as superior speed, throughput, and a settlement finality that has improved from 400 to 150 microseconds, which resonates with high-frequency trading standards. However, this forward-looking view is contrasted by current market data, which shows Solana holds a modest 4.7% ($13.9 billion) share of the stablecoin market, significantly trailing Ethereum's dominant 59% share ($172.5 billion). Bitwise is actively backing its thesis with financial products, including an existing Physical Solana ETP with a relatively small $30 million in AUM and a pending spot Solana ETF application with the SEC, for which a decision is due on October 16. The firm also highlights Solana's faster unstaking period as a critical design advantage over Ethereum for creating liquid staking ETFs. This institutional advocacy is occurring while SOL's price is down 2% on the day and remains over 22% below its peak, suggesting the market has not yet fully embraced this narrative.

Key Decisions for Investors

• Investors should closely monitor the SEC's decision on the Bitwise spot Solana ETF, expected by October 16, as an approval would be a significant positive catalyst, while a rejection could reinforce market headwinds.
• Evaluate the long-term institutional adoption thesis by tracking growth in Solana's stablecoin market share and total value locked (TVL) relative to Ethereum's, as these are key metrics for validating the 'new Wall Street' narrative.
• Consider the disconnect between Bitwise's bullish long-term vision and the currently muted investor interest in its existing Solana ETP ($30M AUM) and the asset's recent price weakness, which may present an opportunity for long-term believers or a caution for those focused on current momentum.