Key Insights
- JPMorgan issued $50M commercial paper on Solana using USDC for settlement
- The deal moves regulated short-term funding onto public blockchain rails.
- Franklin Templeton and Coinbase purchased the debt and provided custody backing.
J.P. Morgan has completed a $50 million commercial paper issuance for Galaxy Digital Holdings using the Solana blockchain, marking one of the earliest cases in which a major U.S. bank has issued and serviced a securities instrument through public blockchain infrastructure.
Coinbase Global and Franklin Templeton purchased the short-term debt, while all issuance and redemption payments were settled in USDC, the dollar-backed stablecoin issued by Circle.
Public Blockchain Settlement Enters Short-Term Debt Markets
J.P. Morgan developed an on-chain commercial paper token, referred to as USCP, to manage both issuance and redemption of commercial paper. The token operates entirely on Solana, with USDC used for settlement at each stage of the transaction. Coinbase provided private-key custody and wallet services for the token and supported on- and off-ramp activity for the stablecoin used in the settlement cycle.
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The structure demonstrates how tokenised securities and stablecoins can operate within standard debt markets without altering the legal characteristics of commercial paper. Payment flows followed traditional funding mechanics as they moved across blockchain infrastructure, rather than relying solely on bank-only rails.
Recently, JPMorgan conducted blockchain-based issuances only on its private networks, including a municipal bond for the City of Quincy and commercial paper for a Singapore-based bank. Those efforts relied on Quorum, the bank’s Ethereum-based private ledger, as well as related internal platforms.
J.P. Morgan Expands Beyond Private Ledgers
While the bank has long positioned its strategy around blockchain infrastructure rather than cryptocurrency speculation, its approach has broadened in recent years. J.P. Morgan now permits institutional clients to use Bitcoin and Ethereum as loan collateral and recently launched JPM Coin, known as JPMD, on the Base blockchain to enable continuous institutional settlement.
The Galaxy Digital issuance extends that development by placing a regulated debt instrument on a public network. For Galaxy, the transaction represents its first commercial paper issuance in the United States. The firm stated that the on-chain structure offers access to short-term funding while preserving the core features of traditional commercial paper programs.
Jason Urban, Galaxy’s Global Head of Trading, stated that the issuance reflects the firm’s view that open blockchain infrastructure can support institutional financial instruments and integrate seamlessly within established capital markets workflows. Galaxy had previously tokenised its SEC-registered equity on Solana, making the commercial paper deal a continuation of earlier experimentation.
Institutional Players Build Market Structure on Solana
Franklin Templeton described the transaction as part of a broader phase in which institutions are executing larger blockchain-based financing activities.
Sandy Kaul, Head of Innovation at the firm, said each on-chain issuance contributes to the development of market structure for digital instruments tied to real-world assets.
