Institutions took a major step toward blockchain-native capital markets with J.P.Morgan arranging an onchain commercial paper issuance for Galaxy Digital on Solana.
Summary
J.P.Morgan structures landmark USCP deal on Solana
On December 11, 2025, J.P.Morgan revealed it had arranged a U.S. Commercial Paper (USCP) issuance for Galaxy Digital Holdings LP, an affiliate of Galaxy Inc., on the Solana public blockchain.
The securities were purchased by Coinbase Global Inc. and Franklin Templeton, underscoring growing institutional demand for blockchain-based fixed-income instruments.
The transaction is one of the earliest debt issuances ever completed on a public blockchain and among the first in the U.S. to use blockchain technology for both issuance and servicing of securities. Moreover, it represents a significant milestone for global financial markets exploring tokenized real-world assets.
J.P.Morgan acted as arranger, created the on-chain USCP token and handled delivery-versus-payment settlement of the primary issuance. Both issuance and redemption proceeds will be paid in USDC stablecoins issued by Circle, adding another market first for the U.S. commercial paper market by fully integrating stablecoin-based cash flows.
Institutional appetite for digital assets grows
Scott Lucas, Head of Markets Digital Assets at J.P.Morgan, said the deal is a crucial step toward defining blockchain’s role in future markets. He emphasized that the trade shows strong institutional interest in digital assets and J.P.Morgan’s ability to bring new instruments on-chain using Solana while maintaining security and control.
Moreover, Lucas highlighted that the bank remains focused on meeting evolving client demand for digital asset exposure while safeguarding the integrity of traditional markets. That said, the project underlines J.P.Morgan’s broader strategy to expand its digital asset capabilities for institutional clients.
J.P.Morgan continues to push boundaries in digital assets, promoting secure, scalable and transparent solutions across global finance. The bank is positioning its Commercial & Investment Bank as a leading intermediary for tokenized securities and blockchain-based settlement.
Galaxy Digital’s first commercial paper issuance
This transaction marks Galaxy‘s first commercial paper issuance and its debut in tokenized short-term funding. The on-chain USCP format strengthens the firm’s liquidity management and expands access to institutional investors adopting blockchain-based money-market products in their portfolios.
Galaxy’s investment banking affiliate, Galaxy Digital Partners LLC, acted as Structuring Agent on the transaction. Furthermore, the securities were purchased by Coinbase and Franklin Templeton, demonstrating how traditional finance players and crypto-native firms can collaborate on new issuance models.
Jason Urban, Global Head of Trading at Galaxy, said the deal shows how public blockchains can improve capital markets operations. He noted that by bringing its first commercial paper offer on-chain and helping structure one of the earliest U.S. transactions of this kind, Galaxy is executing on its long-held vision of open, programmable market infrastructure.
Public blockchains reach institutional scale
Urban added that the firm is pleased to collaborate with J.P.Morgan, Coinbase, Solana and Franklin Templeton to embed these innovations into everyday market activity. That said, the initiative also illustrates how tokenized instruments can coexist with existing regulatory and operational frameworks.
Sandy Kaul, Head of Innovation at Franklin Templeton, said institutions have entered a new era where they are no longer just experimenting with blockchain but transacting at scale. She stressed that each new institutional deal with on-chain issuance accelerates the transition toward a more open, efficient and resilient financial ecosystem.
Kaul noted that this investment supports the work of the Galaxy team and contributes to building a robust pipeline of blockchain-based money-market opportunities. Moreover, it signals how traditional asset managers are beginning to integrate tokenized instruments into their broader investment strategies.
Solana infrastructure and Coinbase’s role
Nick Ducoff, Head of Institutional Growth at the Solana Foundation, called the issuance a major step in bringing the security and efficiency of public blockchains to institutional finance. He emphasized that Solana’s architecture lets firms like J.P.Morgan arrange financial transactions with the trust, scale and performance markets demand.
Brett Tejpaul, Co-CEO of Coinbase Institutional, said the milestone deal shows how institutional finance is embracing public blockchain infrastructure. In his view, Coinbase played a foundational role by acting as both investor and wallet provider, alongside offering key on- and off-ramp services for USDC.
Tejpaul explained that Coinbase provided private-key custody and wallet services for the newly issued USCP token, while leveraging the strength of its balance sheet to support the transaction. Moreover, he argued that by building the rails for real-world assets to move securely on-chain, the firm is actively shaping the next phase of capital markets.
J.P.Morgan’s Commercial & Investment Bank profile
J.P.Morgan’s Commercial & Investment Bank is a global leader in banking, payments, markets and securities services. Start-ups, corporations, governments and institutions trust the bank with their business in more than 100 countries worldwide, reflecting deep market penetration and long-standing client relationships.
With $40.1 trillion of assets under custody and $1.11 trillion in deposits, the Commercial & Investment Bank provides strategic advice, raises capital, manages risk, offers payment solutions, safeguards assets and supplies liquidity in global markets. Further information is available at www.jpmorgan.com/global, which outlines the group’s broader digital asset strategy.
Media inquiries are directed to Gurpreet Kaur for the U.S. and Erica Lewis for EMEA, underscoring the bank’s coordinated communications strategy around this onchain commercial paper milestone and its implications for institutional finance.
Overall, the transaction brings together J.P.Morgan, Galaxy, Coinbase, Solana and Franklin Templeton in a pioneering use of public blockchain infrastructure, signaling how traditional capital markets are beginning to migrate toward tokenized, programmable securities.
