Solana, the fourth-largest blockchain by TVL, is gaining institutional adoption as more financial institutions integrate with it.
As more financial institutions “future-proof” their offerings through Solana blockchain integration, according to Robinson Burkey, CCO and co-founder of Wormhole Foundation, an increasing number of organizations will do so.
Burkey stated in a remark on research:
“Solana and institutions make sense. Industry leaders like PayPal, Stripe, and Visa must future-proof their offerings. The best way to do that is by meeting their most forward-thinking users on the platforms they’re adopting. You’ll likely see many more institutional moments for Solana in the coming years.”
PayPal inaugurated its foray into a blockchain outside the Ethereum ecosystem last week with the expansion of its PayPal USD stablecoin to the Solana network.
Using the integration, Solana users will be able to execute low-cost transactions on the network utilizing PYUSD, thereby expanding the stablecoin’s applicability to routine expenditures.
Visa, a multinational payments corporation, introduced USD Coin on the Solana blockchain in September 2023. This network, in addition to Ethereum, will support the stablecoin.
Solana is among the blockchain networks with the greatest scalability, capable of processing massive volumes of transactions.
Solana exhibits a theoretical throughput of 65,000 transactions per second (TPS) and a mean transaction cost of $0.0025, surpassing Ethereum’s 15 TPS and considerably elevated gas fees (which commence at $1 but escalate to $50 in periods of network congestion).
Based on the writing of Ran Goldi, vice president of payments at Fireblocks, Solana’s infrastructure can effortlessly incorporate the current operations of conventional payment institutions, thereby increasing institutional adoption.
“With confidential transfers, a basic payment requirement for large-volume processors, we will see additional names adopting the blockchain into their flows. The key, as I see it, is making sure your blockchain can support the “under the hood” payment requirements for compliance, regulation, and privacy.”
Goldi added that the addition of a feature for confidential transfers could enable Solana to secure even more institutional partnerships:
“Doing that, plus speed and vast liquidity, [Solana] can become a sharp tool in the hands of payment institutions.”
Solana is the fourth-largest blockchain network at present, according to DefiLlama data, with over $4.7 billion in TVL, or 4.49 percent of the total TVL across all blockchains.