Solana news: Solana Sheds Meme Coin Image as Major Banks Move Billions into Its Ecosystem-2
Institutional Adoption of Solana Accelerates
A recent Messari report reveals that Solana is moving beyond its reputation as a speculative meme coin platform, as major banks and payment companies transfer billions into its ecosystem. This trend continues despite a broader slowdown in the cryptocurrency market.
Growth in Tokenised Assets and Payments
Solana's real-world asset market capitalisation rose by 43% quarter-on-quarter, reaching $2.01 billion. This growth is driven by the expansion of BlackRock's BUIDL tokenised money market fund and new integrations related to payments and tokenised finance. BUIDL, developed by BlackRock and Securitize, reached $525.4 million on Solana after Anchorage Digital added custody support, holding approximately 81% of the asset's supply on the network.
Traditional Finance Firms Expand on Solana
Several established financial companies increased their Solana-related activities. Ondo Finance launched over 200 tokenised equities and ETFs on Solana, while Franklin Templeton partnered with Ondo to bring tokenised ETF products to the blockchain. Citigroup completed a proof of concept for tokenised trade finance on Solana with PwC.
Payments Infrastructure and Stablecoins
Payment giants such as Visa, Stripe, Worldpay, Western Union, and PayPal have either integrated Solana for stablecoin settlements or launched payment products on the network. Solana's low fees and near-instant settlement times are cited as key advantages for payment infrastructure. The stablecoin market capitalisation on Solana ended the quarter at $14.85 billion, ranking third among blockchains. Adjusted stablecoin transaction volume grew by 13% to $246.8 billion.
Sustained On-chain Activity Despite Market Downturn
Despite falling cryptocurrency prices, Solana's on-chain activity remained resilient. The total application revenue, referred to as "chain GDP" by Messari, held steady at around $342.2 million for the quarter.
Technical Developments and Future Outlook
The report notes a shift in activity towards high-speed trading infrastructure, such as "Prop AMMs", which are beginning to outperform centralised exchanges in execution quality and trading costs. The upcoming Alpenglow upgrade is expected to reduce transaction finality from approximately 12.8 seconds to around 150 milliseconds, potentially strengthening Solana's position in payments, tokenised finance, and AI-powered applications.
Why This Matters for the UK
The increasing institutional adoption of Solana, especially by global banks and payment providers, signals growing confidence in its infrastructure for tokenised assets and payments. This trend is relevant for UK financial institutions, fintechs, and regulators exploring blockchain integration, as Solana's advancements may influence adoption strategies and regulatory considerations in the UK market.
