Solana news: Solana Sheds Memecoin Image as Major Banks Move Billions On-Chain-2
Institutional Adoption Accelerates on Solana
A recent report by Messari highlights a significant shift in Solana's ecosystem, as major banks and payment firms are moving billions of dollars in tokenised assets onto the network. This development marks a departure from Solana's earlier reputation as a hub for speculative memecoin trading.
Key Financial Integrations
- BlackRock's tokenised money market fund, BUIDL, reached $525.4 million on Solana, with Anchorage Digital providing custody for approximately 81% of the asset's supply.
- Ondo Finance launched over 200 tokenised equities and ETFs on Solana, with Franklin Templeton collaborating for on-chain ETF products.
- Citigroup and PwC completed a proof-of-concept for tokenised trade finance using Solana.
Payments and Stablecoin Growth
Payment giants such as Visa, Stripe, Worldpay, Western Union, and PayPal have integrated Solana for stablecoin transactions or launched Solana-specific payment products. The network's low fees and near-instant transaction times are cited as key advantages for payment infrastructure.
Solana's stablecoin market capitalisation ended the quarter at $14.85 billion, ranking third among blockchains. Adjusted stablecoin transfer volume rose 13% quarter-on-quarter to $246.8 billion.
Resilient On-Chain Activity
Despite declining cryptocurrency prices, Solana's on-chain activity remained robust. The network's total application revenue, referred to as "Chain GDP" by Messari, held steady at approximately $342.2 million for the quarter.
Technical Advancements and Future Outlook
Messari's report notes a shift in Solana's activity, with increased adoption of high-speed trading infrastructure known as "Prop AMM". This technology is beginning to surpass centralised exchanges in execution quality and transaction costs.
The upcoming Alpenglow upgrade is expected to reduce transaction finality times from around 12.8 seconds to approximately 150 milliseconds. These improvements could further strengthen Solana's position in payments, tokenised finance, and AI-powered applications.
Why This Matters for the UK
The growing institutional adoption of Solana for tokenised assets and payments signals opportunities for UK fintech firms and financial institutions to explore blockchain-based solutions. With London as a global finance hub, these trends may influence future digital asset strategies and regulatory considerations in the UK market.
