Bitwise CIO Predicts Solana Will Become Wall Street’s Top Stablecoin and Tokenization Network

Bitwise Chief Investment Officer Matt Hougan believes Solana is set to become Wall Street’s preferred blockchain for stablecoins and real-world asset tokenization, citing its speed, efficiency, and strong settlement finality as key advantages over Ethereum.

• Bitwise CIO Matt Hougan says Solana is “the new Wall Street” for stablecoins and tokenized assets.
• Solana’s settlement speed improved from 400 microseconds to 150 microseconds, appealing to institutional traders.
• Solana now holds $13.9 billion in stablecoins, with a 4.7% market share, still behind Ethereum’s dominance.
• Ethereum leads with $172.5 billion in stablecoins and 59–65% market share across its L2s.
• Bitwise’s Solana ETF decision is expected on October 16, with current AUM of $30 million.
• Bitwise executives argue Solana’s fast unstaking and performance make it ideal for ETFs.

Bitwise’s Chief Investment Officer, Matt Hougan, has predicted that Solana will soon become the go-to blockchain for Wall Street when it comes to stablecoins and tokenized real-world assets. Speaking alongside Solana Foundation’s Akshay BD on October 2, Hougan said, “I think Solana is the new Wall Street.”

Hougan explained that institutional investors are more comfortable understanding stablecoins and tokenized assets than Bitcoin, which he described as “ephemeral” and harder for traditional finance to grasp. “They can see what’s happening in the stablecoin and tokenization space — and they know it’s going to be enormously significant,” he said.

He added that many influential financial figures now believe stablecoins will reinvent payments, while tokenization will transform stock, bond, and real estate markets. When these investors assess where to participate, Hougan said, Solana’s combination of speed, throughput, and finality makes it “extraordinarily attractive.”

According to Hougan, Solana’s settlement speed improvements—from 400 microseconds to 150 microseconds— align perfectly with how traditional markets operate, where high-speed settlement is essential. This technical edge could make Solana the natural choice for Wall Street’s transition into blockchain finance.

Source: Matt Hougan

Despite Solana’s progress, Ethereum remains the clear leader in the stablecoin market. Data from RWA.xyz shows that Solana’s stablecoin supply sits at $13.9 billion, representing about 4.7% of the total market. In contrast, Ethereum dominates with $172.5 billion, accounting for 59% of the market—or 65% when including layer-2 networks like Arbitrum, Base, and Polygon.

Some critics argue that Ethereum’s ecosystem still offers stronger foundations for new launches. Offchain Labs’ AJ Warner commented that developers should still “build within the EVM,” citing Ethereum’s vast liquidity and security.

Nevertheless, Bitwise continues to double down on Solana. CEO Hunter Horsley said at Token2049 Singapore that Solana could outperform Ethereum in the staking ETF sector, thanks to its much faster unstaking process. “ETFs need to be able to return assets on short notice — that’s a huge challenge Solana solves,” Horsley explained.

Bitwise already operates the Bitwise Physical Solana ETP, giving institutional investors exposure to SOL through physically backed custody. The fund currently holds $30 million in assets under management, but Hougan believes interest will grow as Wall Street starts recognizing Solana’s speed advantages.

Meanwhile, Bitwise’s spot Solana ETF is awaiting a final SEC decision on October 16, a move that could further validate the network’s institutional relevance. At the time of writing, SOL trades around $227, down 2% for the day and still about 22% below its January 2025 all-time high.

Final Thought

Matt Hougan’s confidence reflects a broader trend of institutional players exploring faster, more scalable alternatives to Ethereum. If Solana continues improving its infrastructure and wins regulatory approval for ETFs, it could become Wall Street’s preferred blockchain for digital assets, stablecoins, and tokenized markets.