Skip to main content

Solana RWA Hits $873M ATH: Why SOL Is Capturing Institutional Tokenization

· 12 min read
Dora Noda
Dora Noda
Software Engineer

When Galaxy Digital chose Solana to tokenize its Nasdaq-listed shares, it wasn't just another blockchain experiment. It was a bet that Solana's architecture could handle what traditional finance desperately needs: institutional-grade speed at consumer-grade costs. That bet is paying off spectacularly. As of January 2026, Solana's real-world asset (RWA) ecosystem hit an all-time high of $873 million, marking a 325% surge from the $200 million recorded at the start of 2025.

But the numbers tell only half the story. Behind this exponential growth lies a fundamental shift in how institutions think about tokenization. Ethereum pioneered blockchain-based assets, yet Solana is capturing the lion's share of institutional deployments. Why? Because when Western Union moves $150 billion annually for 150 million customers, milliseconds and fractions of a cent matter more than narrative.

The $873M Milestone: More Than Just a Number​

Solana now ranks as the third-largest blockchain for RWA tokenization by value, commanding 4.57% of the $19.08 billion global tokenized RWA market (excluding stablecoins). While Ethereum's $12.3 billion and BNB Chain's $2+ billion lead in absolute terms, Solana's growth trajectory is unmatched. The network saw an 18.42% monthly increase in distinct RWA holders, reaching 126,236 individuals and institutions.

The composition of these assets reveals institutional priorities. U.S. Treasury-backed instruments dominate: BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) holds $255.4 million in trading market cap on Solana, while Ondo Finance's US Dollar Yield token represents $175.8 million. These aren't speculative DeFi tokens; they're institutional capital seeking yield with blockchain settlement efficiency.

Galaxy Research forecasts Solana's Internet Capital Markets will reach $2 billion by 2026, driven by over 50 new spot altcoin ETF launches in the U.S. and accelerating tokenization demand. If realized, this would position Solana as the third blockchain after Ethereum and BNB Chain to surpass $10 billion in RWA total value locked.

Western Union's $150B Bet on Solana Speed​

When a 175-year-old financial services giant selects a blockchain, the decision carries weight. Western Union's choice of Solana for its USDPT stablecoin and Digital Asset Network, slated for first-half 2026 launch, validates Solana's institutional readiness.

The rationale is straightforward: Western Union processes $150 billion in annual cross-border payments for 150 million customers across 200+ countries and territories. CEO Devin McGranahan confirmed the company "compared numerous alternatives" before selecting Solana as the "ideal fit for an institutional-level setup." The deciding factors? Solana's ability to handle thousands of transactions per second at fractions of a cent, compared to traditional remittance fees that can exceed 5-10%.

Issued by Anchorage Digital Bank, USDPT aims to offer customers, agents, and partners faster settlement and lower costs than legacy payment rails. For context, traditional international wire transfers take 3-5 business days; Solana transactions finalize in approximately 400 milliseconds. That speed differential isn't just a technical curiosity—it's a business model disruptor.

Western Union's embrace of Solana also signals pragmatism over ideology. The company didn't choose Ethereum for its decentralization narrative, nor a private blockchain for perceived control. It chose Solana because the economics work at scale. When you're moving $150 billion annually, infrastructure costs matter more than ecosystem tribalism.

Galaxy Digital's Tokenization Milestone: SEC-Registered Shares On-Chain​

Galaxy Digital's decision to become the first Nasdaq-listed company to tokenize SEC-registered equity shares directly on Solana marks another inflection point. Through its GLXY token, Class A common shareholders can now hold and transfer equity on-chain, combining public market liquidity with blockchain programmability.

This isn't just symbolism. J.P. Morgan arranged a landmark commercial paper issuance on Solana for Galaxy, demonstrating that institutional capital markets infrastructure is operational. Galaxy Research's broader $2 billion projection for Solana's Internet Capital Markets by 2026 reflects confidence that this model will scale.

Galaxy's broader market vision extends far beyond Solana's near-term $2 billion projection. Under a base scenario, the firm forecasts tokenized assets (excluding stablecoins and CBDCs) will reach $1.9 trillion by 2030, with an accelerated adoption scenario pushing this to $3.8 trillion. If Solana maintains its 4.57% market share, that implies $87-174 billion in RWA on the network by decade's end.

Ondo Finance Brings Wall Street's 24/7 Trading to Solana​

Ondo Finance's expansion to Solana in January 2026 represents the most comprehensive tokenized equities deployment to date. The platform, called Ondo Global Markets, now offers 200+ tokenized U.S. stocks and ETFs on Solana, extending beyond its earlier Ethereum and BNB Chain presence.

The range of assets spans the full Wall Street spectrum: technology and growth stocks, blue-chip equities, broad-market and sector ETFs, and commodity-linked products. Each tokenized security maintains 1:1 physical backing, with underlying assets held in custody by regulated traditional financial institutions. This makes Ondo the largest RWA issuer on Solana by asset count.

What sets this apart from traditional brokerages? Trading operates 24/7 with near-instant settlement, eliminating the T+2 settlement cycle and after-hours trading restrictions. For international investors, this means accessing U.S. markets during their local business hours without the friction of brokerage accounts, wire transfers, and currency conversion delays.

Ondo already manages $365 million in tokenized assets across chains. If adoption scales, Solana could become the primary venue for after-hours and international equity trading—a multi-trillion-dollar market that legacy infrastructure has failed to serve efficiently.

Multiliquid's Instant Redemption: Solving RWA's Liquidity Problem​

One persistent bottleneck in tokenized RWAs has been redemption delays. Traditional issuers often require 24-72 hours—or longer—to process redemptions, creating a liquidity mismatch for holders who need immediate access to capital. This friction has constrained institutional adoption, particularly for treasury managers and market makers who can't tolerate multi-day lock-ups.

Multiliquid and Metalayer Ventures' instant redemption facility, launched in late 2025, directly addresses this pain point. The system allows holders to convert supported tokenized assets into stablecoins instantly, 24/7, with no waiting period. Rather than waiting for issuer-led redemptions, holders swap assets through smart contracts at a dynamic discount to net asset value (NAV), compensating liquidity providers for immediate capital access.

Metalayer Ventures acts as the capital provider, raising and managing the liquidity pool, while Multiliquid (developed by Uniform Labs) provides the smart contract infrastructure, compliance enforcement, interoperability, and pricing mechanisms. Initial support covers assets from VanEck, Janus Henderson, and Fasanara, spanning tokenized Treasury funds and select alternative assets.

The facility's launch coincided with Solana's RWA ecosystem surpassing $1 billion, positioning the network as the third-largest blockchain for tokenization. By eliminating redemption delays, Multiliquid removes one of the last remaining barriers preventing institutional treasury managers from treating tokenized assets as cash equivalents.

Why Solana Is Winning Institutional Tokenization​

The convergence of Western Union, Galaxy Digital, Ondo Finance, and Multiliquid on Solana isn't coincidental. Several structural advantages explain why institutions choose Solana over alternatives:

Transaction throughput and cost: Solana processes thousands of transactions per second at sub-cent costs. Ethereum's L1 remains expensive for high-frequency operations; L2s add complexity and fragmentation. BNB Chain offers competitive costs but lacks Solana's decentralization and validator distribution.

Finality speed: Solana's 400-millisecond finality enables real-time settlement experiences that mirror traditional finance expectations. For payment processors like Western Union, this is non-negotiable.

Single-chain liquidity: Unlike Ethereum's fragmented L2 ecosystem, Solana maintains unified liquidity and composability. Tokenized assets, stablecoins, and DeFi protocols interact seamlessly without bridges or cross-rollup complexity.

Institutional comfort: Solana's architecture resembles centralized trading systems more than blockchain idealism. For TradFi executives evaluating infrastructure, this familiarity reduces perceived risk.

Validator decentralization: Despite criticisms about early centralization, Solana now operates over 3,000 validators globally, providing sufficient decentralization for institutional risk committees.

The network's 126,236 RWA holders—growing 18.42% monthly—demonstrate that institutional adoption is accelerating, not plateauing. As more issuers launch products and liquidity infrastructure matures, network effects compound.

The $2B Projection: Conservative or Inevitable?​

Galaxy Research's $2 billion projection for Solana's Internet Capital Markets by 2026 appears conservative when examining current trajectories. At $873 million in early January 2026, Solana needs only 129% growth to reach $2 billion—a lower growth rate than the 325% achieved in 2025.

Several catalysts could accelerate beyond this baseline:

  1. Altcoin ETF launches: Over 50 spot altcoin ETFs are expected in 2026, with several likely to include SOL exposure. ETF capital flows historically drive ecosystem activity.

  2. Stablecoin network effects: Western Union's USDPT will add substantial stablecoin liquidity, improving capital efficiency for all Solana RWA products.

  3. Ondo's equity expansion: If 200+ tokenized stocks gain traction, secondary market trading could drive significant volume and liquidity demand.

  4. Institutional FOMO: As early adopters like Galaxy and Western Union validate Solana's infrastructure, risk-averse institutions face mounting pressure to deploy capital or cede competitive advantages.

  5. Regulatory clarity: Clearer U.S. stablecoin regulations and SEC guidance on tokenized securities reduce compliance uncertainty, unlocking pent-up institutional demand.

If these factors align, Solana could surpass $2 billion by mid-2026, not year-end. The more ambitious scenario—reaching $10 billion to match Ethereum and BNB Chain—becomes plausible within 18-24 months rather than multiple years.

Challenges Ahead: What Could Derail the Momentum​

Despite impressive growth, Solana's RWA ambitions face several headwinds:

Network reliability concerns: Solana experienced multiple outages in 2022-2023, shaking institutional confidence. While stability has improved dramatically, one major outage during a Western Union payment window could reignite reliability debates.

Regulatory uncertainty: Tokenized securities remain in a gray area under U.S. law. If the SEC enforces stricter interpretations or Congress passes restrictive legislation, RWA growth could stall.

Custodial risk: Most Solana RWAs rely on centralized custodians holding underlying assets. A custody failure—whether through fraud, insolvency, or operational failure—could trigger industry-wide contagion.

Competition from traditional finance: Banks and fintechs are building competing infrastructure. If Visa or JPMorgan launches faster, cheaper payment rails using private blockchain technology, Western Union's Solana bet could lose relevance.

Ethereum L2 maturation: As Ethereum L2s improve interoperability and reduce costs, Solana's speed advantage narrows. If unified L2 liquidity emerges via chain abstraction protocols, Ethereum's ecosystem depth could reclaim institutional preference.

Market downturn effects: Tokenized Treasury yields look attractive at 4-5% when risk assets are volatile. If traditional markets stabilize and equity risk premiums compress, capital could rotate out of blockchain-based instruments.

None of these risks appear immediately existential, but they warrant monitoring. Institutions deploying capital on Solana are making multi-year bets on infrastructure stability and regulatory alignment.

What This Means for Blockchain Infrastructure​

Solana's RWA success validates a specific thesis: speed and cost matter more than decentralization maximalism when targeting institutional adoption. Ethereum's rollup-centric roadmap prioritizes censorship resistance and validator accessibility; Solana prioritizes transaction throughput and composability. Both are valid strategies, but they attract different use cases.

For payments, remittances, and high-frequency trading, Solana's architecture fits naturally. For censorship-resistant money and long-term asset custody, Ethereum's social layer and validator distribution remain superior. The question isn't which chain "wins," but which captures which institutional segments.

Developers building RWA infrastructure should note what's working: instant redemptions, 24/7 equity trading, and stablecoin-native settlement. These aren't novel DeFi primitives; they're basic features that traditional finance provides poorly. Blockchain's competitive advantage lies in reducing settlement times from days to milliseconds and cutting intermediary costs by 90%+.

The infrastructure layer has largely been built. Metalayer's liquidity facility, Ondo's asset issuance platform, and Solana's transaction processing demonstrate that technical barriers are solved. What remains is distribution: convincing institutions that blockchain-based assets are operationally superior, not just theoretically interesting.

The Road to $10B: What Needs to Happen​

For Solana to join Ethereum and BNB Chain above $10 billion in RWA value, several milestones must occur:

  1. USDPT achieves scale: Western Union's stablecoin needs tens of billions in circulation, not millions. This requires regulatory approval, banking partnerships, and merchant adoption across 200+ countries.

  2. Ondo's equity products reach critical mass: Tokenized stocks must achieve sufficient liquidity that market makers and arbitrageurs close price gaps with traditional exchanges. Without tight spreads, institutional adoption stalls.

  3. Major asset managers launch funds: BlackRock, Fidelity, or Vanguard launching native Solana products would unlock billions in institutional capital. BUIDL's $255 million presence is a start, but the industry needs 10x more commitments.

  4. Secondary market depth: Tokenized assets need liquid secondary markets. This requires both infrastructure (DEXs optimized for RWA trading) and market makers willing to provide two-sided liquidity.

  5. Interoperability with TradFi: Seamless on/off-ramps between Solana and traditional banking systems reduce friction. If moving dollars from Bank of America to Solana takes five days, institutional adoption suffers.

  6. Proven operational track record: Solana must maintain 99.9%+ uptime through multiple market cycles and stress events. One catastrophic outage could set adoption back years.

None of these milestones are guaranteed, but all are achievable within 18-24 months if current momentum continues.

BlockEden.xyz provides enterprise-grade infrastructure for Solana and other high-performance chains, enabling developers to build real-world asset platforms with the reliability institutions demand. Explore our Solana API services to access the network powering the future of tokenization.

Sources​

Share on Twitter