JPMorgan Issues Tokenized Commercial Papers on Solana

This deal, valued at $50 million, became one of the first instances of issuing debt securities on a public blockchain in the US, with settlements in the USDC stablecoin. Coinbase and Franklin Templeton acted as buyers, highlighting the growing integration of traditional financial institutions with decentralized technologies.

Deal Details

The issuance took place on December 11, 2025. JPMorgan acted as the arranger, creating an on-chain USCP token that represents short-term corporate debt. Galaxy Digital, as the issuer, structured the deal through its affiliated subsidiary Galaxy Digital Partners LLC. Settlements for the issuance and future redemption were conducted exclusively in USDC from Circle, making this transaction the first in the commercial papers sector to use stablecoins.

Coinbase not only became the lead investor but also provided wallet services, custody of private keys, and on/off-ramps for USDC. Franklin Templeton, a well-known investment company, also acquired a portion of the papers, demonstrating the interest of traditional players in tokenized assets.

This deal marks a debut for Galaxy Digital in issuing commercial papers, expanding its short-term financing capabilities and access to institutional investors through blockchain money market tools.

Market Significance

Experts note that this transaction demonstrates institutional demand for digital assets and the role of blockchain in the future of financial markets. Scott Lucas, head of digital assets markets at JPMorgan, commented:

"Today's deal is an important step toward understanding the role of blockchain in the future of financial markets."

He emphasized that the bank chose Solana to explore a new network, despite its long-standing collaboration with Ethereum.

Representatives from Galaxy Digital, Franklin Templeton, Solana Foundation, and Coinbase also expressed optimism about the potential of open, programmable infrastructure for capital markets. According to analysts, asset tokenization could radically change post-trade processes, ensuring fast settlement, simplified transaction processing, and automated payments.

The market is reacting positively: the price of Solana has risen amid the news, and discussions in the X community highlight the "quiet transition of TradFi to public blockchains." Forecasts point to the potential of the real-world assets (RWA) market at $18.9 trillion by 2033.

Context and Prospects

JPMorgan has long been experimenting with blockchain, but this deal is a step beyond private networks to public ones like Solana. The bank plans to issue securities on multiple blockchains in the future. This is happening amid a broader trend: the crypto market is recovering after Bitcoin's drop below $90,000, but analysts expect growth starting in March 2026.

This event underscores the merger of TradFi and DeFi, paving the way for more efficient, transparent financial instruments.