Solana Gains Favor with Institutions after PayPal USD Launch
Solana, ranking as the fourth-largest blockchain by total value locked (TVL), is rapidly emerging as a frontrunner in institutional adoption within the blockchain space. A growing number of financial institutions are expected to integrate with Solana to ensure their offerings remain relevant in the future, as noted by Robinson Burkey, the Chief Commercial Officer and co-founder of Wormhole Foundation. Burkey emphasized the synergy between Solana and institutional needs in a research note, stating that industry giants such as PayPal, Stripe, and Visa need to align their services with the cutting-edge platforms being adopted by their most forward-thinking users. He predicts a significant rise in institutional participation on the Solana network in the coming years.
PayPal’s recent expansion of its PayPal USD stablecoin to the Solana blockchain marks a significant milestone. This move, PayPal’s first blockchain integration beyond Ethereum, enables Solana users to perform low-cost transactions using PYUSD, aiming to enhance the stablecoin’s utility in everyday transactions. This integration signifies a broader trend of financial institutions recognizing the benefits of Solana’s network capabilities.
In September 2023, Visa followed suit by launching its USD Coin on the Solana blockchain, making it the second network to support the stablecoin alongside Ethereum. This development underscores Solana’s growing appeal among major financial services providers, who are attracted to its scalability and efficiency.
Solana stands out as one of the most scalable blockchain networks, capable of processing up to 65,000 transactions per second (TPS) at an average cost of just $0.0025 per transaction. This efficiency contrasts sharply with Ethereum’s 15 TPS and higher transaction fees, which can range from $1 to $50 during peak times. According to Ran Goldi, Vice President of Payments at Fireblocks, Solana’s robust infrastructure is well-suited for traditional payment institutions, paving the way for greater institutional adoption.
Goldi further commented on the potential benefits of integrating confidential transfers, a key requirement for high-volume processors. He believes that this feature, combined with Solana’s speed and liquidity, will attract more institutional partners. Confidential transfers enhance compliance, regulatory adherence, and privacy, essential factors for large-scale payment processors.
Data from DefiLlama indicates that Solana currently holds the position of the fourth-largest blockchain network with over $4.7 billion in TVL, accounting for 4.49% of the total TVL across all blockchains. This significant market position highlights Solana’s growing influence and adoption within the decentralized finance ecosystem.
Beyond boosting institutional use, Solana might soon enter the exchange-traded fund (ETF) arena. Tristan Frizza, the founder of Zeta Markets, noted that Solana is often regarded among the top three cryptocurrencies alongside Bitcoin (BTC) and Ethereum (ETH), with strong expectations for a Solana ETF in the near future. Partnerships with major companies like Visa, Stripe, Shopify Pay, and PayPal are likely to drive further merchant and institutional adoption of Solana.
The anticipation for a Solana-based ETF began in January when asset management giant Franklin Templeton commended Solana for its comprehensive approach to blockchain scaling. In a social media post, Franklin Templeton described Solana as a “powerful use case of decentralized blockchains,” sparking speculation about the potential for an ETF. Crypto investor and CNBC trader Brian Kelly also speculated that Solana could be the next cryptocurrency to secure a spot ETF in the United States, signaling broadening recognition and adoption of Solana within the financial sector.
34 thoughts on “Solana Gains Favor with Institutions after PayPal USD Launch”
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Integrating confidential transfers sounds good, but what about existing security concerns?
Solana is carving out a significant position in the blockchain world with its technology and strategic partnerships. Amazing work!
Incredible to see Solana’s TVL and the institutional adoption it’s driving! This blockchain is truly formidable.
The PayPal and Visa integration with Solana is a milestone! This blockchain is definitely one to watch.
Solana’s growth and influence in the market are simply unmatched. Truly excited about its future!
Super excited about Solana’s progress. Its adoption by financial giants is a testament to its capabilities.
Great to see such influential companies integrating with Solana! 🤝 It’s only going up from here. 🌠
Solana might be scalable, but its centralization worries me. 🤔
A Solana ETF might just end up being an investor’s nightmare. 🚨
Solana is definitely setting the bar high with 65,000 transactions per second! Plus, low fees make it even better!
Relying on Solana for institutional transactions? Sounds like a disaster waiting to happen.
Solana’s scalability and low transaction fees make it the go-to for institutions. Fantastic progress! 💸📈
With such solid market positions, Solana is clearly a frontrunner. Excited for the possibilities ahead!
The fast transaction times are nice, but centralization defeats the purpose of blockchain.
Love seeing financial giants recognizing Solana’s potential. 📈 Here’s to more growth and innovative partnerships! 🥂
Solana’s rapid growth and adoption are truly impressive! 🔥 Can’t wait for more exciting developments. 🚀
billion in TVL isn’t enough to mask Solanas reliability issues.
Solana’s scalability isn’t worth much if the network keeps having downtime. 🛑
TPS is impressive, but can we trust Solana with large-scale transactions?
The hype around a Solana ETF is overblown; regulatory hurdles are massive.
Solana’s transaction speed and low costs are game-changers for financial institutions. Super excited about its future!
Solana’s speed and low transaction cost are game-changers in the crypto world! Looking forward to seeing more integration!
Impressive growth from Solana! 👏 The institutional interest from giants like PayPal and Visa is a game-changer. 💪📈
Way to go, Solana! Your scalability, speed, and security are winning the game. Onwards and upwards!
Solana is truly making waves 🌊 in the blockchain industry with its efficiency and scalability! Can’t wait to see its future adopters! 🚀
Solana’s partnership with PayPal is a massive step forward! Truly a sign of great things to come.
Solanas network outages are a huge red flag!
Solana is leading the way for blockchain adoption in the financial industry! 🌟 Keep it up!
Solana is proving to be a major player in the DeFi space. 🌟 Incredible growth and partnerships!
Confidential transfers? More like confidentially hiding how unstable Solana can be.
Amazing to see Solana offering such robust infrastructure! Big things await this blockchain.
Solana’s partnership with PayPal and Visa shows its immense potential! Can’t wait to see more!
The scalability and efficiency of Solana make it a top contender in the blockchain space. Amazing work!
The rise of Solana is just phenomenal. Visa and PayPal getting on board is a huge deal.