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Solana (SOL) has witnessed a significant development as BlackRock, the world’s largest asset manager, has made inroads into the blockchain. In an update shared with members of the community, Solana announced its progress in terms of institutional adoption.
Institutional adoption grows with BlackRock’s $1.7 billion fund
Securitize, a company specializing in tokenized securities, has launched the BlackRock USD Institutional Digital Fund (BUIDL). The unveiling of this $1.7 billion tokenized treasury fund on Solana signals a remarkable milestone in institutional adoption.
A key feature of this token is that it is yield-bearing, which means that investors can earn returns from holding the token. This is similar to how traditional treasury funds operate on financial markets.
Yuri MolchanAnalysts say BlackRock and Securitize's choice to use Solana as their blockchain infrastructure speaks volumes. They opine that the Solana ecosystem's fast transaction speed, low cost and efficiency must have played a huge role in the decision.
The move further solidifies Solana’s blockchain infrastructure and could drive SOL's long-term growth.
The development highlights how traditional financial products can be integrated into blockchain networks. This increases their accessibility and potentially makes them more efficient.
Could potential Solana ETF be in the making?
As of press time, the Solana price was changing hands at $145.92, a 1.93% increase in the last 24 hours. The coin continues its rebound moves after crashing to a low of $124.54 in the last seven days.
Market participants hope the current recovery and bullish news will further sustain price action. Solana is looking to regain the $150 resistance level before investors can become hopeful of breaching the psychological $200 mark again.
Godfrey BenjaminOther positive developments for Solana are institutional interest from asset managers seeking a spot for the Solana exchange-traded fund (ETF). Pantera Capital's VP Cosmo Jiang is highly optimistic that SOL could become the next altcoin after Ethereum to have its ETF approved by the U.S. SEC.
Vladislav Sopov
Dan Burgin