Bitwise Executive Predicts Solana Will Become Wall Street’s Preferred Stablecoin Network

Solana’s Speed and Efficiency May Attract Traditional Finance

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, believes Solana (SOL) is positioned to become the go-to blockchain for Wall Street’s stablecoin and tokenization markets, thanks to its remarkable speed, throughput, and transaction finality.

Speaking in an interview on October 2, Hougan remarked, “I think Solana is the new Wall Street.” He emphasized that major financial institutions now recognize the transformative potential of stablecoins and real-world asset (RWA) tokenization, describing them as key innovations that will reinvent payments and reshape financial markets.

“Stablecoins will reinvent payments and tokenization will reinvent stock, bond, commodity, and real estate markets,” Hougan said, noting that Solana’s performance metrics align closely with the trading speed expectations of traditional finance.

Yes it is @solana. Exciting times ahead. https://t.co/pVX1WTGfx4

— Matt Hougan (@Matt_Hougan) October 4, 2025

Hougan pointed to Solana’s rapid improvements in settlement speed — from 400 microseconds to 150 microseconds — as a critical factor that appeals to institutional traders who prioritize high-frequency execution.

“When they evaluate the blockchain space, Solana’s speed and finality make it extraordinarily attractive,” he explained.

This perspective highlights a growing narrative: while Bitcoin remains a speculative and reserve asset, Solana offers the infrastructure for scalable, real-world financial operations — from stablecoin issuance to tokenized equities and bonds.

Ethereum Still Dominates, but Solana Is Gaining Ground

Despite the enthusiasm, Ethereum (ETH) continues to dominate the stablecoin market, with approximately $172.5 billion in on-chain stablecoin value, commanding a 59% market share. When including its layer-2 ecosystems such as Arbitrum, Base, and Polygon, Ethereum’s dominance expands to around 65%.

By comparison, Solana’s stablecoin circulation stands at $13.9 billion, representing 4.7% of the global market. Still, that share has grown rapidly in recent quarters, reflecting increasing developer activity and institutional interest in Solana’s ecosystem.

Industry analysts note that Solana’s low latency and parallel transaction processing make it a strong contender for next-generation financial applications, even if Ethereum remains the leader for now.

Bitwise’s Expanding Focus on Solana

Bitwise’s executives have been vocal supporters of Solana’s long-term potential. Recently, Bitwise CEO Hunter Horsley stated that Solana’s network design could give it an advantage in staking ETFs, as its unstaking period is much shorter than Ethereum’s.

This difference is crucial for ETF structures that require fast redemption and asset delivery, aligning well with Solana’s efficiency.

Bitwise currently manages the Bitwise Physical Solana ETP, which offers institutional exposure to SOL through a fully backed, custodial structure. The fund currently holds about $30 million in assets under management, indicating modest but growing investor interest.

Meanwhile, the firm is also awaiting a decision from U.S. regulators on its spot Solana ETF, with a final ruling expected on October 16.

At the time of writing, SOL was trading near $227, down 2% on the day and about 22% below its January 2025 all-time high. Still, analysts say institutional momentum could support a long-term recovery — especially if Wall Street begins integrating stablecoin settlements or tokenized assets on Solana’s rails.

While Ethereum remains the undisputed leader in decentralized finance, Solana’s technical performance and institutional appeal could reshape how traditional markets interact with blockchain. If Hougan’s prediction proves correct, Solana may soon become the preferred blockchain for Wall Street’s digital asset revolution.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.