Solana stands out as one of the fastest and most innovative blockchains, focusing on high performance and low transaction costs.
The blockchain processes approximately 65,000 transactions per second (TPS) with fees as low as $0.001, making it ideal for various financial applications.
Solana offers institutions two groundbreaking solutions: Token Extensions and Permissioned Environments.
Designed for regulated entities, Token Extensions allow banks and financial institutions to create compliant tokens on Solana’s public blockchain. Features like transfer restrictions, ownership validation, and regulatory reporting ensure institutions meet strict compliance standards.
Example: PayPal cited Token Extensions as a core reason for deploying their PYUSD stablecoin on Solana, leveraging these features to provide a scalable and compliant solution.
For institutions unable to use public blockchains due to regulatory constraints, Solana offers Permissioned Environments. These private deployments allow institutions to customize validation rules, transaction governance, and compliance monitoring while retaining the speed and efficiency of Solana’s core technology.
Example: One specific example is the company Iron, which is building an on-chain bank. Iron uses Solana Permissioned Environments (SPEs) to benefit from Solana's architecture while:
From peer-to-peer transfers to large-scale institutional settlements, Solana’s payment capabilities are reshaping global finance.
Sling Money, a Solana-powered payment app, has become a leader in Africa, topping app charts in several countries. By offering fast, low-cost transactions in emerging markets, Sling Money exemplifies Solana’s potential to bring financial inclusion to underserved regions.
Corporations such as the $1.4 trillion asset manager Franklin Templeton use Solana for treasury management and moving funds across borders with unmatched efficiency. Traditional bank transfers, which require multiple intermediaries, are now replaced by Solana's seamless infrastructure.
With Solana, institutions can reduce transaction layers, save on fees, and manage liquidity more effectively than ever before.
Major companies like PayPal, Visa, Stripe, and Franklin Templeton have chosen Solana for their blockchain initiatives. These partnerships demonstrate Solana's capability to handle enterprise-scale operations while maintaining its core benefits of speed and low cost.
Cross-border payments have emerged as a primary focus, eliminating the complex chain of correspondent banks and reducing multiple layers of fees.
The Solana network enables companies to move funds across borders efficiently and manage their global liquidity.
Franklin Templeton is pioneering the use of tokenized money market funds on Solana, planning to bring traditional financial products into the DeFi ecosystem. This allows for greater composability, meaning other protocols can build additional services on top of these tokenized funds.
Solana’s Firedancer update, developed in partnership with Jump Crypto, represents a breakthrough in blockchain scalability. Scheduled for deployment in 2025, Firedancer will increase TPS from 65,000 to over 1 million, reinforcing Solana’s position as the fastest blockchain in the world.
Why it Matters:
This milestone, dubbed “Solana’s Merge Moment,” is poised to attract even more institutional adoption.
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