Key Takeaways
- Solana has found a major footing among the traditional financial giants in 2024.
- Citibank and Franklin Templeton announced plans to launch financial products on Solana.
- Paypal CEO lauded Solana as the go-to payment platform, climbing it is better than Ethereum.
Solana has caught the eye of major financial giants worldwide. The blockchain network has seen an unprecedented rise in demand and adoption from retail and institutional customers.
Following initial explorations by PayPal and VanEck, a growing number of traditional players are reportedly eyeing Solana as a viable platform for launching new financial products.
Franklin Templeton, Citibank Show Interest
Franklin Templeton, a $1.5 trillion asset manager, has announced plans to launch a suite of mutual funds on Solana.
The announcement, made by Mike Reed, Head of Partnership Development at Franklin Templeton, came during the Solana Breakpoint conference, where he delivered a keynote address highlighting the firm’s intentions to tap Solana’s capabilities.
Reed explained that Franklin Templeton aims to harness Solana’s scalable infrastructure and capitalize on its efficiency and transparency.
The Franklin Templeton exec also praised Solana’s development tools, describing them as “second to none.”
Similarly, Citibank, the fourth largest bank in the U.S., said it is exploring the Solana network to use it for seamless money transfers and advanced smart contracts in the future.
Like Franklin Templeton, Citibank praised Solana’s capabilities and scalability.
Institutions’ Preferred Blockchain?
Beyond its token price growth, Solana’s success is also exemplified by its real-world adoption, a trend that has defined the 2024 bull run.
The latest announcements from major financial institutions have reinforced this narrative, highlighting the network’s potential for widespread use.
One notable example is PayPal, which launched its native dollar-backed stablecoin, PYUSD, on Solana earlier this year. According to the company’s head of the blockchain unit, Solana’s scalable infrastructure and token extension features make it an ideal platform for payment processors.
Meanwhile, asset managers VanEck and 21Shares have been exploring the possibility of launching a Solana exchange-traded fund (ETF).
Although their initial filings were withdrawn from the Cboe website shortly after submission, the companies have signaled that their plans for a SOL ETF are far from abandoned.
However, some industry experts have tempered expectations for a Solana ETF in the near future.
Nate Geraci, co-founder of the ETF Institute, recently stated that a SOL ETF is unlikely to materialize “anytime soon.” SEC Commissioner Hester Pierce has also expressed caution regarding crypto ETFs, suggesting that the regulator would require convincing before approving any new filings.
Solana’s Rise From an Ethereum Competitor
Solana blockchain was launched as a competitor to Ethereum, offering decentralized infrastructure and DeFi capabilities. The network was plagued with blackouts and congestion issues in its early days. However, in 2024, it seems to have found its footing beyond the Web3 ecosystem.
Solana blockchain gained traction from the memecoin frenzy in the first quarter of 2024. It helped the chain outperform its competitors like Ethereum in terms of trading volume and on-chain activity. The memecoin frenzy highlighted the network’s capability to handle high volume and unexpected surge in demand.
This is one of the key reasons traditional financial giants are turning to the Solana network to advance their digital asset plans.
The Solana ecosystem is also built from a modern user point of view. This is evident from their launch of the second crypto phone during the Token 2049 event in Singapore.
Solana’s investment in hardware and software, combined with its dedicated social following, can propel the network to become the perfect gateway between the traditional banking system and the Web3 ecosystem.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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