JPMorgan Issues $50M Commercial Paper on Solana for Galaxy Digital

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JPMorgan Issues $50M Commercial Paper on Solana for Galaxy Digital

JPMorgan has issued a $50 million commercial paper for Galaxy Digital on the Solana blockchain, using USDC for settlements. This marks a key step in blockchain adoption by major banks, enabling efficient, secure tokenized securities transactions for institutional investors.

• JPMorgan‘s role as issuer and servicer highlights Wall Street’s blockchain integration for traditional finance instruments.
• Coinbase and Franklin Templeton invested in the short-term debt, showcasing growing institutional interest in on-chain assets.
• The transaction settled fully in USDC on Solana, reducing costs and enhancing transparency with immutable blockchain records.

What is JPMorgans $50 Million Commercial Paper Issuance on Solana？

JPMorgans $50 million commercial paper issuance on Solana represents a groundbreaking transaction where the major Wall Street bank issued and serviced a tokenized security for Galaxy Digital Holdings directly on a public blockchain. This short-term debt instrument was purchased by institutional investors like Coinbase Global and Franklin Templeton, with all settlements conducted using USDC, Circles dollar-pegged stablecoin. The move underscores the convergence of traditional finance and blockchain technology, providing faster, more transparent funding mechanisms.

How Does the USDC Settlement and On-Chain Security Structure Work in This Deal？

In this transaction, JPMorgan created the USCP token to represent Galaxy Digital‘s commercial paper, handling the full issuance process on the Solana network. Payments for the purchase and redemption were executed entirely in USDC, ensuring seamless and secure transfers without intermediaries. This structure leverages Solana’s high-speed, low-cost infrastructure to maintain the integrity of financial obligations.

Scott Lucas, Head of Markets Digital Assets at JPMorgan, emphasized the bank‘s commitment to scaling this model. He noted strong interest from institutions seeking to blend digital settlement with short-term funding tools. According to JPMorgan’s internal reports, such on-chain issuances can reduce settlement times from days to minutes, cutting operational costs by up to 50% in some cases.

For Galaxy Digital, this was their inaugural on-chain commercial paper offering. The firm highlighted how the blockchain setup opens doors to a broader pool of investors comfortable with digital assets. Jason Urban, Global Head of Trading at Galaxy Digital, described it as a natural extension of their multi-year workflow developments, affirming that public blockchains are now robust enough for institutional capital market activities.

Franklin Templeton, a key participant, views this as a milestone in tokenizing financial products. Sandy Kaul, Head of Innovation at Franklin Templeton, stated that each blockchain transaction builds valuable data and expertise, paving the way for standardized tokenized instruments in mainstream finance.