Solana, the fourth-largest blockchain by total value locked (TVL), is swiftly rising as the preferred network for institutional adoption, buoyed by recent integrations with major payment institutions like PayPal.

Robinson Burkey, co-founder and chief commercial officer of Wormhole Foundation, noted in a research note that Solana's scalability and forward-thinking approach make it an attractive option for financial institutions aiming to future-proof their offerings. With industry giants like PayPal, Stripe, and Visa expanding onto the Solana network, Burkey predicts a surge in institutional adoption in the years ahead.

PayPal's recent expansion of its PayPal USD (PYUSD) stablecoin to the Solana network on May 28 marks a significant milestone for Solana, as it ventures beyond the Ethereum ecosystem for the first time. This move allows Solana users to conduct cost-effective transactions using PYUSD, enhancing the stablecoin's utility for everyday purchases.

Similarly, in September 2023, Visa introduced USD Coin (USDC) on the Solana blockchain, leveraging Solana's scalability to support large transaction volumes. Solana's theoretical throughput of up to 65,000 transactions per second (TPS) and low transaction costs have positioned it as a viable alternative to Ethereum for payment institutions.

Ran Goldi, vice president of payments at Fireblocks, emphasized the importance of Solana's infrastructure in integrating traditional payment flows. Goldi highlighted the potential for Solana to attract more institutional partnerships by introducing features like confidential transfers, which are essential for compliance, regulation, and privacy.

With over $4.7 billion in TVL, accounting for 4.49% of the total TVL across all blockchains, Solana has already established itself as a formidable player in the crypto space. Tristan Frizza, founder of Zeta Markets, believes that Solana's growing merchant and institutional adoption could pave the way for a Solana-based exchange-traded fund (ETF) in the near future.

Frizza's sentiments echo those of industry experts, who have long speculated about the possibility of a Solana ETF. Trillion-dollar asset manager Franklin Templeton previously praised Solana for its innovative approach to blockchain scaling, while CNBC Fast Money trader Brian Kelly has also suggested that a Solana-based ETF could be on the horizon for the United States.

As Solana continues to solidify its position as a top-tier blockchain platform, the prospect of an ETF could further elevate its status in the institutional investment landscape, marking a significant milestone in its journey toward mainstream adoption.