A growing divide between traditional finance (TradFi) and decentralized finance (DeFi) is becoming increasingly evident, as highlighted by Kyle Samani, co-founder and managing partner of Multicoin Capital. In a recent discussion with TheStreet Roundtable, Samani voiced his strong preference for Solana over Ethereum, especially in light of recent developments regarding index fund management.
Samani criticized the notion that the MSCI (Morgan Stanley Capital International) is contemplating the exclusion of firms that hold more than 50% of their treasury in digital assets from its indices. He described this move as an attempt by “boomers” entrenched in TradFi to maintain their grip on financial systems while blockchain technology continues to advance. “The boomers that control TradFi are fighting against the new regime. It just seems kind of silly,” he remarked.
He further dissected the MSCI”s position, which claims that certain companies primarily act as crypto holders without substantial operational businesses. Using MicroStrategy as an example, he argued that if shareholders disapprove of holding crypto, they would sell their shares, resulting in a decline in stock price. However, he pointed out that the stock remains highly liquid, contradicting the MSCI”s assessment.
In terms of investments, Samani revealed that Forward Industries, which secured a $1.65 billion private investment in public equity (PIPE) from Multicoin Capital, Galaxy Digital, and Jump Crypto, is establishing a Solana-focused digital asset treasury. He emphasized that Forward Industries aims to develop a diversified portfolio of cash-flow-generating businesses related to Solana and the cryptocurrency ecosystem, rather than simply holding SOL.
As the discussion shifted towards tokenization, Samani argued that while Ethereum currently leads in market share, its position is fragile. He pointed to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) as a significant player in tokenization, noting that ownership is heavily concentrated among a few holders, including Ethena and MakerDAO, who control over 85% of BUIDL shares. This concentration raises concerns about the sustainability of Ethereum”s dominance.
For asset managers like BlackRock and Fidelity, Samani claimed the critical question isn”t which blockchain current tokenized funds utilize but where future users will emerge. He believes that tokenization is still in its infancy, and the current market share figures do not capture the complete picture. He urged major firms to consider Solana as their preferred blockchain due to its lower costs, speed, and daily usage among retail investors.
