How Solana and XRP Are Shaping Institutional Crypto Investments

The current market cycle is characterized by substantial institutional interest in crypto. Businesses worldwide are ramping up efforts to incorporate digital assets into their financial structures.

Although Bitcoin (BTC) and Ethereum (ETH) remain the primary focus, Fabian Dori, Chief Investment Officer at digital asset bank Sygnum, stressed that altcoins tied to emerging Web3 ecosystems might experience growing demand. In an exclusive conversation with BeInCrypto, Dori discussed the next wave of institutional adoption and where the market is heading.

Institutional Interest Shifts to Altcoins: Solana (SOL) and XRP (XRP) May Lead the Way

There has been a notable shift in market dynamics since the previous year. A survey conducted by Sygnum in November 2024 indicated that 57% of institutions intended to boost their long-term crypto investments. 

Furthermore, 63% of those surveyed expected to increase their crypto allocations within the next three to six months, a scenario that is currently unfolding. BeInCrypto has extensively reported on how businesses are allocating millions to building crypto treasuries.

Bitcoin is leading the charge, as at least 61 companies have invested in it. Dori explained that interest in Bitcoin primarily stems from its status as a store-of-value asset. 

Additionally, Ethereum’s dominance in the smart contract space has brought it into the institutional spotlight. However, the involvement remains comparatively less pronounced than that of Bitcoin.

Besides the top two cryptocurrencies, Dori highlighted SOL and XRP as the next assets on the investors’ radar.

“Based on institutional asset flow, we’re seeing growing interest in altcoins like SOL and XRP due to their complementary use cases and improving regulatory clarity,” he said.

The executive elaborated that Solana stands out with its efficient blockchain and smart contract capabilities, focusing on high throughput, low transaction fees, fast finality, and a growing DePIN ecosystem. On top of that, it has a significant presence in DeFi, with decentralized exchanges like Raydium, Orca, and Pump.fun, collectively seeing nearly $1 trillion in cumulative trading volume.

This makes SOL appealing to large-scale investors and developers looking to build scalable DeFi platforms and explore real-time use cases such as trading, payments, and gaming.

Moreover, he noted that while XRP has long been utilized for cross-border payments, Ripple’s RLUSD stablecoin has strengthened its position. It is gaining popularity among financial institutions for its low-cost remittance capabilities.

“The CME’s launch of XRP futures in 2025 and potential ETF approvals for XRP and SOL indicate institutional readiness to move further out on the risk curve,” Dori told BeInCrypto.

Dori also pointed out that Chainlink’s oracle services are essential for DeFi and smart contracts, as they ensure reliable data feeds. Thus, this makes it a potential candidate for institutional support.

“Unlike speculative tokens with little to no use case, altcoins that offer exposure to emerging Web3 ecosystems could also see rising demand, especially those governed by active communities and backed by real utility,” he added.

He predicted that altcoins offering yield generation, such as those enabling staking and yield-bearing stablecoins, will become increasingly popular. Notably, Dori emphasized that this trend is already gaining traction.

“This is one of the main focus areas for institutional investors, and the best options currently available include staking, liquid staking, restaking, tokenized treasuries, DeFi integrations, and arbitrage opportunities,” he remarked.

Dori cited Ethena’s USDe and Ondo Finance’s tokenized treasuries as examples of how they have gained popularity among investors. He also noted that institutions are exploring staking services, decentralized lending, liquidity provisioning, and market-making as alternative yield sources. 

In addition, arbitrage strategies, such as funding rate and basis trade arbitrage, attract institutions familiar with market-neutral absolute return strategies.

What Comes After Bitcoin? The Next Big Trends in Institutional Crypto

Meanwhile, speaking to BeInCrypto, Dori shared what comes next. He believes institutional crypto adoption will expand beyond spot Bitcoin and Ethereum.

“I see more engagement with sophisticated derivatives, including futures, options, perpetual swaps, and other structured products that allow institutions to manage risk, implement sophisticated trading strategies, and gain exposure in a capital-efficient manner, aligning with their traditional investment workflows. These instruments enable hedging and leverage, appealing to asset managers seeking risk-adjusted returns,” the executive noted.

Furthermore, he shared that tokenized real-world assets are gaining traction and are expected to be a significant growth area. This includes tokenized real estate, commodities, and private credit.

These offer benefits like fractionalization, improved liquidity, yield opportunities, and greater transparency in markets that were previously less accessible.

“I also predict increased involvement with DeFi through secure and compliant gateways, including permissioned DeFi platforms and institutional-grade lending and borrowing services for various digital assets, enabling sophisticated treasury management and yield generation,” Dori commented.

Lastly, he mentioned DePIN, which aligns incentives for real-world services, and AI-blockchain integrations, which are drawing venture capital due to their use case, widespread appeal, and scalability.

While the increasing adoption benefits the sector overall, it raises questions about where traditional finance (TradFi) fits into all of this. According to Dori, banks will become the primary bridges to crypto for institutional investors. 

Although native crypto players dominate retail and DeFi, banks offer regulatory compliance, institutional-grade custody, and seamless integration with TradFi systems—critical factors that asset managers and corporations require.

“The improving regulatory landscape in the US, which includes the SEC’s Staff Accounting Bulletin 122, is likely to bolster banks’ involvement with crypto. SAB 122 encourages banks to offer crypto services like staking and lending, enhancing their competitiveness, which could eat into the market share currently controlled by native players like Coinbase and Binance,” he detailed.

Dori envisions that banks’ infrastructure and KYC frameworks will help onboard institutions. This was demonstrated by Visa and PayPal’s adoption of stablecoins. He foresees the emergence of a hybrid model. Here, banks may collaborate with native platforms to increase access without requiring the specialized knowledge necessary for operating in the crypto space.