The Chief Investment Officer of Bitwise Asset Management, Matt Hougan, recently expressed his views on Solana’s burgeoning role in the crypto space, dubbing it the “new Wall Street” for stablecoins and real-world asset tokenization. Speaking at an event hosted by Solana Labs on October 2, he highlighted the platform’s unique capabilities that make it appealing to traditional financial institutions.
“I think Solana is the new Wall Street,” Hougan stated during his discussion with Solana Labs’ Akshay Rajan. He noted that while Bitcoin (BTC) remains a significant player, many Wall Street professionals view it as “very ephemeral” and challenging to fully grasp. In contrast, the stablecoin market and asset tokenization resonate more with their understanding, as these innovations are seen as potentially transformative for finance. “Really important people are saying that stablecoins will reinvent payments, and tokenization will reinvent stock, bond, commodity, and real estate markets,” he added.
Solana’s advantages in the blockchain ecosystem were another focal point in Hougan’s commentary. He pointed to the platform’s impressive performance metrics, including a reduction in settlement times from 400 microseconds to just 150 microseconds. This level of efficiency aligns closely with the fast-paced trading habits favored by institutional investors, further enhancing Solana’s attractiveness as a foundation for new financial products.
Despite Solana’s growing role in the stablecoin sector, it remains significantly smaller compared to Ethereum (ETH). As of now, Solana boasts a stablecoin supply of approximately $13.9 billion, accounting for a market share of 4.7%, according to data from RWA.xyz. In stark contrast, Ethereum commands an impressive $172.5 billion in on-chain stablecoin value, translating to a dominant market share of 59%. When incorporating layer-2 solutions like Arbitrum and Polygon, that share increases to approximately 65%.
Bitwise executives have previously praised Solana’s potential in the crypto landscape. At the recent Token2049 event in Singapore, Bitwise CEO Hunter Horsley discussed how Solana might surpass Ethereum in the staking asset exchange-traded fund (ETF) arena. He emphasized that Solana’s quicker unstaking period compared to Ethereum’s is a crucial advantage for ETFs, which require rapid asset liquidity.
The firm currently offers a product known as the Bitwise Physical Solana ETP, granting investors a chance to invest in SOL through a robust, physically-held structure backed by institutional-grade custody. However, interest in this fund has lagged behind the more popular Bitcoin and Ethereum ETF offerings, with only about $30 million in assets under management.
Additionally, Bitwise is awaiting a decision from the U.S. Securities and Exchange Commission (SEC) regarding its spot Solana ETF application, with a final ruling projected for October 16. As of now, SOL prices are down approximately 2% to $227, reflecting a more than 22% drop from its peak earlier this year.
As the cryptocurrency landscape continues to evolve, Solana’s position could indicate a shift toward a new paradigm in asset tokenization and stablecoin markets, with key industry leaders increasingly recognizing its potential.
