J.P. Morgan Brings Onchain Debt to Solana

J.P. Morgan has carried out a US$50 million (AU$77 million) tokenised commercial paper transaction for Galaxy Digital, using the Solana blockchain to complete one of the earliest public-chain debt issuances in the United States. Coinbase and Franklin Templeton purchased the securities, which represent Galaxy’s inaugural commercial paper issue and the debut of its on-chain USCP token.

To execute the deal, J.P. Morgan created the digital instrument natively on Solana and arranged settlement through a delivery-versus-payment mechanism. The bank confirmed that all cash movements for both issuance and redemption occur in USDC, adding another first to the commercial paper market by enabling a fully stablecoin-based workflow. 

Scott Lucas, Head of Markets Digital Assets at J.P. Morgan, said the trade highlights the growing appetite among institutions for blockchain-based instruments and the bank’s ability to introduce new products on Solana securely.

As a client-centric business, we remain focused on meeting the evolving demand for digital asset exposure while preserving the integrity of traditional markets.

Scott Lucas, Head of Markets Digital Assets, J.P. Morgan

Jason Urban, Galaxy’s Global Head of Trading, said the structure boosts its short-term financing options while offering institutional investors access to money-market tools that operate entirely on-chain.

We’re putting into practice the model we’ve long believed in: open, programmable infrastructure that supports institutional-grade financial products.

Jason Urban, Global Head of Trading, Galaxy

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Institutional Involvement

Coinbase provided support through custody and wallet services for the USCP token, as well as the necessary USDC conversion rails required to move funds in and out of the on-chain environment. Franklin Templeton described the initiative as evidence that institutions are progressing from early experimentation toward large-scale transactional use of blockchain.

The deal sits within a broader surge in US tokenisation efforts, aided by regulatory changes and growing interest from traditional financial players in public blockchains such as Solana, which offer high speed and low-cost settlement. J.P. Morgan noted that it plans to build on this momentum by expanding both the types of securities issued and the range of participants involved.

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