Solana Wall Street Stablecoins: Bitwise CIO Predicts Market Shift
Bitwise’s Chief Investment Officer, Matt Hougan, has stated that Solana could emerge as Wall Street’s preferred blockchain network for stablecoins and real-world asset tokenization. Speaking with Solana Labs’ Akshay Rajan on October 2, Hougan described Solana as “the new Wall Street” due to its technical strengths and growing appeal among institutional investors.
Background: Solana’s Momentum in Stablecoins and Tokenization
Matt Hougan explained that many institutional investors find Bitcoin “very ephemeral” and hard to grasp. However, these same investors see the tangible applications within stablecoins and asset tokenization, forecasting their significance in future financial systems. Hougan noted, “Really important people are saying that stablecoins will reinvent payments and tokenization will reinvent stock, bond, commodity, and real estate markets.” (Reporting via Cointelegraph).
He also emphasized Solana’s rapid settlement speeds, pointing out that the blockchain has improved its settlement time from 400 microseconds to 150 microseconds. According to Hougan, this appeals specifically to traditional finance professionals accustomed to high-speed trading environments.
Market Reaction: Comparing Solana and Ethereum
Data from RWA.xyz shows Solana currently hosts $13.9 billion in stablecoin value, accounting for about 4.7% of the market. In contrast, Ethereum remains the leader, supporting $172.5 billion in onchain stablecoins for a 59% market share—a figure that rises to 65% when including Ethereum layer-2 networks like Arbitrum, Base, and Polygon.
Offchain Labs’ Chief Strategic Officer AJ Warner compared the total value locked (TVL) on each network, stating that, despite Solana’s growth, investors looking to launch new stablecoins should “build within the EVM,” referring to Ethereum’s environment.
What’s Next: Solana’s Position in the ETF Market
This is not the first time Bitwise has signaled bullishness on Solana. At Token2049 in Singapore, Bitwise CEO Hunter Horsley argued that Solana could surpass Ethereum within the staking ETF market. Horsley cited Solana’s faster unstaking period as advantageous for ETFs, which require rapid asset liquidity.
Bitwise currently offers the Bitwise Physical Solana ETP, providing institutional exposure to SOL. However, the product has attracted only $30 million in assets under management, a modest sum compared to Bitcoin or Ethereum ETFs. Furthermore, Bitwise is awaiting a decision from the U.S. Securities and Exchange Commission (SEC) regarding its proposed spot Solana ETF, with an approval deadline set for October 16.
Despite mounting institutional attention, SOL’s market price has fallen 2% in recent trading, currently standing at $227 and remaining over 22% below its all-time high set in January 2025.
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