In this discussion, Guillaume Chatain, Chief Revenue Officer at Société Générale - FORGE, shares insights on tokenizing securities and the potential of stablecoins. Nick DeCoff, Head of Institutional Growth at The Solana Foundation, highlights Solana's dramatic growth in institutional adoption and its role in reshaping finance. They explore the shift towards public blockchains, the rise of instant transactions, and the future of stablecoins as key players in B2B payments. Expect fascinating insights into the intersection of traditional finance and innovative blockchain technology!
The institutional interest in Solana has surged, with significant investments and a drastic increase in total value locked from $300 million to $7 billion.
Solana's technological superiority, characterized by high throughput and low transaction costs, is attracting major financial institutions like Visa and Société Générale to shift their strategies.
The integration of the EuroCV stablecoin into Solana's ecosystem demonstrates a growing corporate preference for fast, cost-efficient cross-border transactions and improved liquidity.
Deep dives
The Rise of Solana Among Institutions
The institutional interest in Solana has significantly increased, evidenced by the entry of major financial players and increased volume on the blockchain. Recent investments include Libra Capital's launch of alternative asset funds on Solana and Citibank's research into the blockchain technology. The growth in total value locked (TVL) from approximately $300 million to about $7 billion highlights the surge in confidence among institutions. This considerable increase in economic activity on Solana serves to attract further institutional engagement.
Technological Innovations Driving Adoption
Solana's appeal lies in its technological advantages, including high throughput and low transaction costs, which are essential for institutions managing high volumes of transactions. The platform’s capacity for compliant, permissionless token extensions allows for the easy creation of regulated financial products. Both Visa and Societe Generale have recognized these capabilities, moving from Ethereum to Solana to leverage its advantages for implementing their blockchain strategies. Such innovations are crucial for attracting traditional financial institutions into the crypto space.
Stablecoins: Key to Enhanced Financial Operations
The EuroCV stablecoin was developed to facilitate efficient settlements and automate financial processes, including coupon payments on bonds. This stablecoin is being integrated further into Solana's ecosystem, highlighting the growing demand from corporate treasurers for fast, cross-border transactions. The advantages of using stablecoins include reduced costs and improved liquidity for corporate transactions. As stablecoins evolve, they are positioned to support various functionalities within decentralized finance (DeFi).
Transforming Financial Accessibility
Solana’s growing ecosystem enables broader access to alternative investments, allowing retail investors to engage with high-quality assets previously available only to wealthy individuals. For example, investment products like Hamilton Lane's private credit fund have minimum investment thresholds significantly lower than traditional banks demand. This democratization of access can attract a wider range of investors, including those in emerging markets, enabling them to capture opportunities in global finance. Such changes in access are pivotal for expanding the financial landscape and inclusion.
The Future of B2B Payments and Interoperability
Businesses are increasingly recognizing that blockchain technology can streamline B2B transactions and improve treasury management through instant settlements and reduced friction. Payment systems that leverage stablecoins facilitate faster, cross-border transactions, appealing to companies operating in global markets. Additionally, the focus is on achieving interoperability among blockchains to support efficient crypto payments across different platforms. As the industry matures, the integration of B2B stablecoin solutions will be crucial for reducing operational barriers and enhancing financial workflows.
On Ep. 9 of Tokenized, Simon Taylor, Head of Content & Strategy @ Sardine, and Cuy Sheffield, Head of Crypto @ Visa, are joined by Guillaume Chatain, Chief Revenue Officer @ Société Générale - FORGE and Nick Ducoff, Head of Institutional Growth @ The Solana Foundation to discuss the state of Solana in 2024, Société Générale - FORGE, EURCV & Solana and the future of stablecoins.
Timestamps:
01:30 The state of Solana in 2024
05:25 Société Générale - FORGE
08:07 EURCV & Solana
10:41 Société Générale journey
14:44 Public vs permissioned blockchains
23:01 The future of stablecoins
27:11 PayPal, Ernst & Young and Google Cloud use Coinbase for B2B payments
36:42 Uniswap launch L2 network Unichain
43:13 Interoperability
46:20 Overcoming institutional challenges
This episode is brought to you by Visa
A world leader in digital payments, Visa is bridging the gap between traditional financial institutions and innovative blockchain networks, helping players in the payments ecosystem navigate the ever-evolving world of tokenized fiat currencies with confidence and ease. Learn more at visa.com/crypto
Visa’s Tokenized Asset Platform (VTAP) uses smart contracts and cryptography to help banks bring fiat currencies onchain. VTAP allows financial institutions to issue fiat-backed tokens, improving financial efficiency and enabling programmable finance. Express interest in VTAP atglobalclient.visa.com/vtap
This podcast is also supported by Digital Asset.
Digital Asset is excited to launch the Canton Network, a proven, trusted, and scaleable service that provides interoperability between institutional-grade tokenization platforms. The Global Synchronizer is now live, managed by Linux and institutions are actively using Canton Coin to manage the governance. No, the banks haven’t launched a token in the classic sense, this is much more interesting. They’ve done it to make all token networks interoperable. Find out more at canton.network
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