- J.P. Morgan issued $50M in U.S. commercial paper on Solana for Galaxy Digital.
- Coinbase and Franklin Templeton purchased the on-chain debt using USDC.
- The deal marks one of the biggest institutional moves toward public-chain securities.
J.P. Morgan has executed a landmark transaction by issuing U.S. commercial paper for Galaxy Digital on the Solana blockchain, marking one of the earliest real-world debt instruments issued and serviced entirely on a public chain. The deal, valued at $50 million, involved Coinbase and Franklin Templeton as buyers, signaling that major players across crypto and traditional finance are now directly participating in blockchain-based securities infrastructure.
Why Solana Is Becoming Wall Street’s Testbed
Institutions are increasingly choosing Solana for tokenized financial products due to its high throughput and low transaction costs. Founded in 2017 and brought to mainnet in 2020, Solana has become the preferred chain for high-volume settlement tests, outperforming older networks once considered the default for digital asset pilots. J.P. Morgan described the issuance as a global milestone, highlighting how rapidly traditional finance is moving toward public-chain integration.
Expansion Plans Already Underway
Scott Lucas, head of Markets Digital Assets at J.P. Morgan, said the bank expects to expand this model next year — broadening both the issuer base and the types of securities brought on-chain. The success of the commercial paper pilot suggests rising demand among institutional clients seeking faster settlement, reduced friction, and improved transparency through tokenized financial instruments.
USDC Powers Settlement for Institutional Debt
J.P. Morgan created an on-chain USCP token for the issuance, with both issuance and redemption proceeds settled in USDC, the dollar-backed stablecoin issued by Circle. This continues a growing trend of using regulated stablecoins for institutional settlement rails as banks and asset managers push deeper into blockchain-based financial products.
Tokenization Is Accelerating Across Wall Street
This is not J.P. Morgan’s first blockchain security issuance — earlier deals included a municipal bond for the City of Quincy (April 2024) and commercial paper for OCBC (August 2025). But this marks the first time the bank has brought U.S. commercial paper onto a public chain like Solana, demonstrating how quickly tokenization is moving from private ledgers to open networks.
