Tokenization's Role in U.S. Financial Power, Solana (SOL) at Center

Tokenization is rapidly transforming financial markets, and according to Thomas Cowan, Head of Tokenization at Galaxy Digital, it could reinforce U.S. financial dominance while changing how global economies compete. Cowan discussed these dynamics with Amira Valliani on the Bits to Bricks podcast, emphasizing how blockchain infrastructure like Solana (SOL) is enabling this shift.

Stablecoins—digital assets tied to fiat currencies—are at the forefront of this trend. Approximately $300 billion in stablecoins are in circulation as of 2025, with 99% denominated in U.S. dollars, according to Federal Reserve data. This dominance wasn't orchestrated by Washington but emerged organically from the crypto ecosystem's preference for dollar-denominated trading pairs and the network effects that followed. "In many ways, $300 billion is a big number," Cowan noted. "In other ways, if you look at FX or actual flows, it’s still a drop in the bucket."

Currently, stablecoins are primarily used for cross-border payments, dollar access in emerging markets, and digital asset trading pairs. However, Cowan predicts a shift as other currencies—like the euro—enter the blockchain space. Galaxy has already launched a euro-denominated stablecoin, signaling the European market's expected growth. This competition could reshape central banking, with nations vying for users by ensuring their currencies remain competitive onchain. "Central banks are realizing they need to offer a public alternative before dollar stablecoins become the default," Cowan said.

The Private Sector’s Role in Innovation

While central banks experiment with retail CBDCs, Cowan expressed skepticism about their viability, citing his experience with Project Hamilton at the Boston Federal Reserve. The pilot demonstrated the technical feasibility of processing 1.7 million transactions per second, but practical deployment remains at least seven years away due to the rigorous testing and resilience standards required. In contrast, private-sector innovations are closing the gap.

Blockchain networks like Solana are leading the way. Solana's Firedancer validator demonstrated 1 million transactions per second in 2024, and recent upgrades cut transaction finality to 100-150 milliseconds. These advancements make stablecoins a practical solution for instant settlement, transparency, and cross-border payments, with costs well under a cent per transaction.

"In that decade, the private sector will solve many of the problems a retail CBDC aims to address," Cowan said. "By the end of that decade, would you really need a retail CBDC? Unclear."

Tokenized Equities: The Next Frontier

Galaxy Digital is pushing boundaries by tokenizing its own stock directly on Solana, marking the first SEC-registered public equity issued on a public blockchain. Unlike traditional wrapped-token approaches, where shares are held by intermediaries, Galaxy's method uses Solana as the legal source of truth for ownership. "I hold Galaxy Class A common stock in my Phantom wallet," Cowan explained, highlighting the seamless integration of blockchain into mainstream finance.

This innovation has broad implications. Tokenized equities reduce counterparty risk by eliminating the six to ten intermediaries typically involved in traditional stock settlement. They also enable real-time visibility for regulators and lenders. Additionally, tokenized shares can be immediately used as collateral in decentralized finance (DeFi), bypassing traditional broker requirements.

Tokenization doesn’t just extend dollar dominance—it extends American financial infrastructure globally. Much like how New York attracts IPOs due to its liquidity and regulatory standards, blockchain ecosystems like Solana aim to become the hub for tokenized markets. Recent moves by infrastructure providers like DTCC, Broadridge, and Securitize underscore this trend, with live tokenization pilots scheduled for late 2026.

A New Era of Financial Competition

As stablecoins and tokenized assets evolve, central banks, issuers, and market participants face a new reality. Stablecoins extend the dollar’s reach in emerging markets, while tokenized equities and bonds create faster, more efficient capital markets. Blockchain ecosystems like Solana, which prioritize speed, cost-efficiency, and regulatory compliance, are positioning themselves as the foundational infrastructure for this transformation.

For investors and policymakers, the question isn’t whether tokenization will reshape finance—it’s how quickly and which players will lead. With private-sector innovation outpacing public projects, the next decade will likely see a convergence of traditional financial systems and blockchain technology, fundamentally altering global financial power structures.