jakiro
author:Yueqi Yang
In the cryptocurrency world, Solana is the wild “brother” who desires attention.Famous for Meme coins and partnerships with crypto exchange FTX, this blockchain is approaching mainstream finance.
According to Bloomberg ETF analyst James Seyffart tracking asset management applications, the U.S. Securities and Exchange Commission (SEC) is more crypto-friendly under President Donald Trump and is expected to approve exchange-traded funds (ETFs) holding Solana tokens in mid-October.
This will make it the third crypto token packaged as stock trading after Bitcoin and Ethereum.Crypto ETFs are booming, as are crypto stocks like Strategy (formerly Microstrategy).Currently, the total value of crypto-related securities traded on the stock market is over $400 billion.
More and more listed companies are raising funds to buy and hold Solana tokens.This is part of the stock boom in companies that hold cryptocurrencies as their main purpose.Two of Solana’s main supporters—Multicoin Capital and SkyBridge Capital—are considering investing in some upcoming Solana-related stocks, Multicoin partner Kyle Samani and SkyBridge founder Anthony Scaramucci said in a separate interview.This could push up the token price.
Solana has basically escaped from close ties with FTX founder Sam Bankman-Fried, the latter of which is the major shareholder and supporter of Solana.Users and developers have stayed away from Solana after the FTX scandal broke out, but things have changed in the past two years.Solana’s token (codenamed SOL) has soared 820% since August 2023, becoming the sixth largest crypto token with a market value of US$99 billion, although it has fallen from its January high.
The growth is partly attributed to the popularity of the Solana blockchain, launched in 2020 by Anatoly Yakovenko and Raj Gokal, founders of Solana Labs.It is seen as a faster and cheaper alternative than the old Ethereum blockchain.These characteristics make Solana the preferred trading platform for Meme coins such as $Trump and Fartcoin, which are extremely popular but highly volatile.
Solana is trying to get rid of the frivolous reputation of Meme coins that exist only for speculation.”The advantages and disadvantages of Solana are that it is very consumer-oriented. The team there is passionate about building consumer products.”
The meme coin craze has subsided, with Solana’s token price falling nearly 40% from its January high.The blockchain’s proponents hope to restart its growth by creating an internet-based capital market.The goal is to trade individual stocks, bonds and stablecoins as tokens on the Solana blockchain.
Solana’s transformation from Meme coins is particularly important for its entry into stablecoins, which should maintain a fixed value, which is completely opposite to Meme coins.
“Stablecoins are at the forefront of the moment, and the target audience is more serious than the meme coin group…I think this is an independent segment,” said Armani Ferrante, founder and CEO of crypto exchange Backpack and early Solana developer.
At least two companies — Circle, which issues the second largest stablecoin and Stripe, payments company — are developing the stablecoin blockchain.These upcoming projects may compete with Solana and current leader Ethereum for stablecoin adoption rates.
Solana is also seeking support in Washington to promote its efforts to create an Internet capital market.It quickly established important partnerships with financial giants such as Visa, BlackRock, Fiserv and R3, a traditional company that develops blockchain for banks.
Just as the introduction of crypto assets into the stock market opens the door to trading for the new investor community, converting stocks into crypto tokens also makes it easier for crypto traders to bet on stocks.This is already happening, with crypto tokens representing stock exposures such as Tesla, Nvidia and Circle becoming increasingly popular among overseas crypto investors who do not have easy access to the U.S. stock market.According to data tracked by crypto-analytics platform RWA.xyz, the total value of tokenized stocks has reached $357 million.
In June, Backed Finance, one of the fastest growing tokenized stock providers, launched xStocks for non-U.S. users on exchanges such as Kraken.RWA.xyz data shows that Solana has quickly become the preferred blockchain for trading these stocks.Kraken, which invested in Backed Finance, plans to offer tokenized stocks to users in more markets, including Europe, in the coming weeks, said Mark Greenberg, head of Kraken’s consumer business.This may bring more trading volume to Solana.
Solana is also seeking support from the bank.This year, the Solana Foundation made an undisclosed investment in R3, a blockchain company backed by Bank of America and other banks, which is reportedly exploring a variety of options including sales in 2024.Lily Liu, chairman of the Solana Foundation, joined the R3 board of directors.
Meanwhile, Solana is expanding its reach in Washington.The Solana Policy Institute was established this year and has hired Kristin Smith, a veteran cryptocurrency lobbyist and former CEO of the Blockchain Association.She is meeting lawmakers and urges the Securities and Exchange Commission (SEC) to provide guidance to make it easier for companies to transfer stocks, bonds and other assets to the blockchain.
Solana also donates to the Senate Leadership Fund, Congress Leadership Fund, Senate Majority Political Action Committee, House Majority Political Action Committee, Sentinel Operations Fund and support for crypto-encrypted Fairshake groups in preparation for the 2026 midterm elections.
Smith said Solana’s Meme coin reputation was not mentioned in her Washington conversation.“We talk to many of the members of Congress starts at the most basic level… They don’t understand that Solana is not just a company, it is a community, an ecosystem,” she said.
