J.P. Morgan announced that it has issued a US commercial paper for Galaxy Digital Holdings using the Solana blockchain, marking a significant step in the growing institutional adoption of digital assets. The commercial paper, a short-term unsecured debt instrument, was purchased by Coinbase Global and Franklin Templeton.
This transaction is one of the first to use blockchain technology for issuing and servicing securities, which J.P. Morgan described as a global milestone as traditional finance begins integrating with decentralized systems. The issuance is valued at 50 million dollars, according to a source familiar with the deal.
Blockchain networks such as Solana, known for their high speed and low transaction costs, continue to attract interest from major financial institutions. J.P. Morgan highlighted that this deal showcases the bank’s ability to securely bring new financial instruments on-chain within a complex legal and regulatory landscape.
Previous blockchain-based issuances by the bank include a municipal securities offering for the City of Quincy in 2024 and a commercial paper issuance for Oversea-Chinese Banking Corporation in 2025. The bank said it plans to expand this structure next year, aiming to broaden both the investor base and the types of securities involved.
For this new deal, J.P. Morgan acted as the arranger and created the on-chain USCP token. Both issuance and redemption will be settled in USDC, a stablecoin pegged to the US dollar.
