Paul Johnson Bitwise CIO Matt Hougan predicts Solana could dethrone Ethereum as Wall Street’s preferred stablecoin and tokenization network, citing its unmatched speed, throughput, and finality.
When Wall Street looks for efficiency in digital asset infrastructure, one blockchain may soon stand out from the rest. According to Bitwise Chief Investment Officer Matt Hougan, Solana is positioning itself as the frontrunner for stablecoin adoption and real-world asset tokenization—two of the most transformative trends in modern finance.
Speaking at a recent discussion with Solana Labs’ Akshay Rajan, Hougan declared: “I think Solana is the new Wall Street.” His bold statement reflects the growing belief among institutional investors that the speed and reliability of Solana could make it the preferred stablecoin network for global capital markets.Why Solana Could Win Wall Street’s Stablecoin Game
For years, Ethereum has been the undisputed leader in decentralized finance (DeFi), stablecoins, and tokenized assets. However, Hougan argues that Wall Street’s needs extend beyond dominance and toward performance at scale.
“Speed, throughput, and finality are what traditional markets care about,” Hougan emphasized. He pointed to Solana’s settlement improvements—from 400 microseconds to 150 microseconds—as a major advantage for institutions used to high-frequency trading.
This level of efficiency resonates with banks, hedge funds, and asset managers who demand near-instant transaction finality. In Hougan’s view, Solana provides the infrastructure necessary to reinvent payments, equities, bonds, commodities, and real estate markets through tokenization.
Ethereum Still Reigns Supreme—for Now
Despite Solana’s momentum, Ethereum remains the king of stablecoins. According to data from RWA.xyz, Ethereum commands $172.5 billion in on-chain stablecoin value and holds nearly 60% of the market share. When factoring in its Layer-2 ecosystems like Arbitrum, Base, and Polygon, Ethereum’s dominance rises even further to about 65%.
By contrast, Solana’s $13.9 billion in stablecoin circulation gives it a modest 4.7% share of the market. Industry leaders such as AJ Warner, Chief Strategic Officer of Offchain Labs, still argue that the Ethereum Virtual Machine (EVM) ecosystem remains the best place to launch new stablecoins.
But as Hougan suggests, this may not be the whole story. “Market share is important, but institutions look at efficiency and long-term scalability. That’s where Solana is catching up quickly,” he implied.
Bitwise’s Longstanding Bullish Case on Solana
This is not the first time Bitwise executives have put their weight behind Solana. Earlier this year, Bitwise CEO Hunter Horsley highlighted Solana’s potential advantage over Ethereum in the staking ETF market.
The key differentiator? Faster unstaking periods. Unlike Ethereum, which has a more rigid exit process, Solana enables rapid redemption of assets—a feature that aligns perfectly with ETF structures that must provide liquidity on demand.
This flexibility, Horsley noted, could give Solana an edge as ETF providers race to meet institutional demand for diverse crypto exposure.
The ETF Angle: Will Solana Be Next in Line?
Bitwise already offers the Bitwise Physical Solana ETP, which gives investors exposure to SOL via a fully backed structure. However, interest has so far been muted compared to BTC and ETH funds, with just $30 million in assets under management.
The bigger catalyst could come on October 16, when the SEC is expected to make a final decision on Bitwise’s proposed spot Solana ETF. Approval would mark a significant milestone, potentially opening the floodgates for institutional capital into the Solana ecosystem.
If greenlit, Solana would join Bitcoin and Ethereum in the short list of blockchains with U.S.-listed ETFs—a symbolic recognition of its growing relevance.
Market Performance: SOL’s Price Struggles
While the institutional narrative strengthens, Solana’s price action has yet to reflect full investor confidence. At the time of writing, SOL trades around $227, down 2% on the day and more than 22% below its January 2025 all-time high.
However, many analysts view this as a consolidation phase. With stablecoin adoption surging and ETF approval potentially on the horizon, Solana may be setting the stage for its next breakout.
The Bigger Picture: Stablecoins and Tokenization as Wall Street’s Future
What makes Hougan’s remarks especially notable is the broader trend he points to: stablecoins and tokenization aren’t just a crypto narrative anymore—they’re a Wall Street narrative.
Major financial institutions increasingly see stablecoins as the next evolution of payments, while tokenization is viewed as the technology that could modernize legacy markets worth trillions.
If Solana can consistently deliver the speed, reliability, and scalability that institutions demand, it may indeed rise as the preferred stablecoin network for Wall Street—even if Ethereum continues to dominate in size.
Final Take
The battle for stablecoin supremacy is far from over, but the tides may be shifting. Ethereum holds the crown today, yet Solana’s performance-driven design could make it Wall Street’s blockchain of choice in the years ahead.
With a potential spot ETF approval looming and growing institutional interest in real-world asset tokenization, Solana has a chance to prove that it’s not just a fast chain—it’s a financial infrastructure contender.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
