The world of traditional finance has never been so close to the blockchain ecosystem. While the boundaries between the two worlds still seemed rigid a few years ago, major institutional players are now taking the plunge with determination. In 2024, Solana, one of the leading blockchain networks, is establishing itself as the new darling of global finance, and is attracting the attention of giants such as Citibank and Franklin Templeton. These players, long cautious about the crypto universe, no longer hide their interest in the opportunities offered by Solana.
Franklin Templeton and Citibank: partnerships at the heart of the news
One of the highlights of the Solana Breakpoint conference was the announcement by Franklin Templeton, a $1.5 trillion asset manager. According to Mike Reed, director of partnership development at Franklin Templeton, “the company is set to launch a series of mutual funds on the Solana blockchain.” Reed justifie this decision by highlighting Solana's “efficiency, transparency and scalable infrastructure,” which he sees as key assets for the future of financial products. Solana's development tools were also praised by the latter, who called them “unparalleled,” which reinforces the idea that this blockchain is a strategic choice for large asset managers.
Citibank, the fourth-largest bank in the United States, is also exploring the use of Solana for fast money transfers and complex smart contracts. The institution highlights the blockchain’s ability to handle a large volume of transactions, with increased security, thanks to its robust and scalable infrastructure.
A promising future for Solana in the institutional sector
The partnerships announced with Franklin Templeton and Citibank are already notable. But that’s not all. PayPal, for example, launched its PYUSD stablecoin on the Solana blockchain earlier this year. The company praised the blockchain’s scalable infrastructure and advanced token scaling capabilities. These moves show that the platform has become a go-to player for large enterprises looking to capitalize on the blockchain for their financial products. Such adoption is not only driven by the speed of transactions, but also by Solana’s ability to handle unexpected spikes in demand, as demonstrated during the memecoin frenzy in early 2024.
The long-term outlook for Solana is similarly bright, with asset management giants like VanEck and 21Shares considering creating Solana-based ETFs. While these initiatives have faced hurdles, including due to caution from the SEC, they show the growing interest in Solana as an alternative to older blockchains like Ethereum.
All that remains is for Solana to prove its resilience over the long term to consolidate this leading position!
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