SOLANA EMERGES AS AN INSTITUTIONAL FAVOURITE FOLLOWING PAYPAL USD LAUNCH !

Solana could emerge as a leading blockchain for payments institutions. Is a Solana-based ETF next?

Solana, the fourth-largest blockchain in terms of total value locked (TVL), is becoming a leading network in institutional adoption.

Increasingly more financial institutions will be integrating with the Solana blockchain to “future-proof” their offerings, according to Robinson Burkey, the CCO and co-founder of Wormhole Foundation.

Burkey wrote in a research note shared with Cointelegraph:

“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."

Last week, PayPal expanded its PayPal USD 

PYUSD

stablecoin to the Solana network, marking its first move to a blockchain beyond the Ethereum ecosystem.

The integration will enable Solana users to conduct inexpensive transactions using PYUSD on the network, aiming to broaden the stablecoin's utility for everyday purchases.

In September 2023, global payments giant Visa launched its USD Coin 

USDC

on the Solana blockchain, the second network to support the stablecoin besides Ethereum.

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Solana to receive more institutional adoption: Fireblocks

Solana is among the most scalable blockchain networks that can handle large amounts of transactions.

Solana has a theoretical throughout of up to 65,000 transactions per second (TPS) with an average transaction cost of $0.0025, outpacing Ethereum’s 15 TPS and significantly higher gas fees that start above $1 but can reach up to $50 during network congestion.