TLDR
- J.P. Morgan issued $50 million in commercial paper for Galaxy Digital Holdings on the Solana blockchain, with Coinbase and Franklin Templeton as buyers.
- The transaction settled entirely in USDC stablecoin, marking one of the first debt issuances on a public blockchain for traditional finance.
- Scott Lucas from J.P. Morgan said the bank plans to expand this structure in the first half of next year, exploring more investor types and security categories.
- This represents Galaxy Digital’s first commercial paper issuance, executed completely on a public blockchain infrastructure.
- Solana’s TVL grew from roughly $6 billion at the start of 2025 to between $10-12 billion by mid-year, showing enterprise readiness.
J.P. Morgan completed a $50 million commercial paper issuance for Galaxy Digital Holdings on the Solana blockchain. Coinbase Global and Franklin Templeton purchased the short-term debt instrument. The deal represents one of the earliest securities issued and serviced using blockchain technology by a major Wall Street bank.
The transaction settled entirely in USDC, a stablecoin issued by Circle. Both issuance and redemption proceeds used the digital currency for payment. J.P. Morgan created the on-chain USCP token and arranged the deal.
Scott Lucas, head of Markets Digital Assets at J.P. Morgan, told Reuters the bank intends to build on this approach in the first half of next year. The expansion will explore different investor types, issuer bases, and security categories. He said the bank sees strong demand for this type of innovation.
Galaxy Digital completed its first commercial paper issuance through this transaction. Jason Urban from Galaxy said public blockchains can improve how capital markets operate. He described it as putting into practice a model the company has believed in for years.
Franklin Templeton stated institutions are now transacting on blockchain in a substantial way, not just experimenting. The asset manager participated as one of the purchasers in the transaction.
Why Solana Got the Deal
Solana launched its mainnet in 2020 after being founded in 2017. Legacy finance institutions have shown interest in the platform due to its high speed and low transaction costs. Data from DeFiLlama shows Solana’s total value locked rose from approximately $6 billion at the start of 2025 to between $10-12 billion by mid-year.
The network maintained consistently high transaction counts throughout the year. Activity increased further in the fourth quarter as institutional experimentation grew. For banks requiring throughput and cost efficiency, Solana offers low-latency public infrastructure.
J.P. Morgan previously issued securities on its private, permissioned blockchain platform. The bank arranged a municipal securities offering for the City of Quincy in April 2024. It also handled a U.S. commercial paper issuance for Oversea-Chinese Banking Corporation in August 2025.
Moving to Public Chains
The choice to use Solana instead of a private chain marks a shift in institutional confidence. J.P. Morgan facilitated on-chain delivery-versus-payment settlement for the transaction. The bank called the deal a “global milestone” as traditional finance intersects with blockchain technology.
Stablecoins are cryptocurrencies designed to track the value of real-world currencies, typically the U.S. dollar. Using USDC for settlement removes friction from the transaction process. Circle issues USDC as the stablecoin provider.
The deal positions Solana as infrastructure for next-generation capital markets. With stablecoin settlement and tokenized money-market instruments, the network gains traction for institutional use. Asset managers now have a working model for blockchain-based securities transactions.
Galaxy Digital’s Urban emphasized the importance of open, programmable infrastructure for institutional-grade financial products. The company demonstrated this approach through its commercial paper issuance.
J.P. Morgan acted as arranger and created the tokenized security. The bank’s role showcases how traditional financial institutions can bridge legacy systems with blockchain technology. Transaction costs remain lower than traditional settlement methods while maintaining security standards.
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