Solana has established itself as the top choice for payment companies looking to utilize blockchain technology.

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Could Solana potentially rise as a top blockchain for payment providers? Could an ETF based on Solana be the next step?

According to Wormhole Foundation’s co-founder and chief commercial officer Robinson Burkey, Solana is rising as a top choice among institutions looking to incorporate blockchain technology. As the fourth-largest blockchain in terms of total value locked (TVL), Solana is proving to be a durable and attractive option for financial institutions.

The use of Solana by institutions is logical. Major players such as PayPal, Stripe, and Visa must ensure that their products are prepared for the future. The most effective approach is to engage with forward-thinking users on the platforms they are adopting. We can expect to witness increased adoption of Solana by institutional players in the next few years.

On May 28th, PayPal announced the expansion of its stablecoin, PYUSD, to the Solana blockchain network. This is the first time that PayPal has ventured beyond the Ethereum ecosystem. This integration will allow Solana users to make low-cost transactions using PYUSD, with the goal of increasing the stablecoin’s usefulness for everyday transactions.

Visa, a major player in the global payments industry, launched a stablecoin called USD Coin (USDC) on the Solana blockchain in September 2023, making it the second platform to offer support for this digital asset after Ethereum.

The Fireblocks company has announced that Solana will be experiencing an increase in institutional adoption.

Solana stands out as one of the most scalable blockchain networks, capable of processing high volumes of transactions. It boasts a theoretical throughput of 65,000 transactions per second (TPS) and an average transaction cost of $0.0025, surpassing Ethereum in both speed and cost.

According to Fireblocks’ vice president of payments, Ran Goldi, Solana’s infrastructure has the potential to smoothly incorporate the established processes of traditional payment institutions, resulting in increased institutional adoption.

With the implementation of confidential transactions, a necessary obligation for high-capacity processors, we can anticipate more entities incorporating blockchain technology into their operations. The crucial factor, from my perspective, is ensuring that your blockchain is equipped to handle the payment requirements necessary for adherence to compliance, regulations, and maintaining privacy.

Goldi mentioned that incorporating a secretive transfer function could potentially broaden Solana’s collaborations with institutional entities.

Based on DefiLlama’s records, Solana is currently ranked as the fourth largest blockchain network, holding a total value locked of over $4.7 billion, which makes up 4.49% of the total TVL of all blockchain networks.

Could a Solana ETF Be on the Horizon?

Tristan Frizza, the founder of Zeta Markets, believes that in addition to growing institutional use, Solana (SOL) may also be poised to become the next cryptocurrency featured in an exchange-traded fund (ETF).

Solana is recognized as one of the top three cryptocurrencies, along with BTC and ETH. It is anticipated that a Solana exchange-traded fund (ETF) will be introduced by many analysts. With notable collaborations with Visa, Stripe, Shopify Pay, and PayPal, there is a high chance of increased acceptance and usage of Solana by businesses and organizations.

In January, the possibility of a Solana-based ETF was initially raised when Franklin Templeton, a trillion-dollar asset manager, commended Solana for its efficient method of scaling blockchain. This was reported in a post by X on January 17.

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Investor in cryptocurrency and trader on CNBC’s Fast Money show.