J.P. Morgan has completed a U.S. Commercial Paper (USCP) issuance for Galaxy Digital Holdings LP using the Solana public blockchain, with the securities purchased by Coinbase Global Inc. and Franklin Templeton. This transaction is among the earliest debt issuances conducted on a public blockchain in the United States and is one of the first to use blockchain technology for both issuing and servicing securities.
In this deal, J.P. Morgan served as arranger, created an on-chain USCP token, and facilitated delivery-versus-payment settlement for the primary issuance. Both issuance and redemption proceeds will be paid in USDC stablecoins issued by Circle.
Scott Lucas, Head of Markets Digital Assets at J.P. Morgan, stated: “Today’s transaction is an important step toward understanding the role blockchain will play in the future of financial markets. This trade demonstrates institutional appetite for digital assets and our capability to securely bring new instruments on-chain using Solana. As a client-centric business, we remain focused on meeting the evolving demand for digital asset exposure while preserving the integrity of traditional markets.”
Galaxy’s Investment Banking Affiliate, Galaxy Digital Partners LLC, acted as structuring agent for its first commercial paper issuance. The new format aims to strengthen Galaxy’s short-term funding options and give institutional investors more access to blockchain-based money-market instruments.
Jason Urban, Global Head of Trading at Galaxy, commented: “This issuance is a clear example of how public blockchains can improve the way capital markets operate. By bringing our first commercial paper offering on-chain and helping structure one of the earliest U.S. transactions of its kind, we’re putting into practice the model we’ve long believed in: open, programmable infrastructure that supports institutional-grade financial products. We’re pleased to collaborate with J.P. Morgan, Coinbase, Solana, and Franklin Templeton to help bring these innovations into everyday market activity.”
Sandy Kaul, Head of Innovation at Franklin Templeton, said: “We’ve entered a new era where institutions are no longer just experimenting with blockchain—we’re transacting on it in a big way. This investment supporting the innovative work of the Galaxy team, and every new institutional deal with onchain issuance, accelerates our collective journey toward a more open, efficient, and resilient financial ecosystem.”
Nick Ducoff from Solana Foundation remarked: “This issuance marks a major step in bringing the security and efficiency of public blockchains to institutional finance. Solana’s architecture makes it possible for firms like J.P. Morgan to arrange financial transactions with the trust and performance the market has always needed.”
Brett Tejpaul from Coinbase Institutional added: “This milestone transaction is a powerful demonstration of how institutional finance is embracing public blockchain technology, and Coinbase is proud to have played a foundational role in making this possible. We are proud to play key roles both as an investor and a wallet provider. Providing essential infrastructure and leveraging the strength of our balance sheet are integral to the success of this transaction. By providing private-key custody and wallet services for the newly issued USCP token and delivering critical on/off ramp services for USDC, we are not just investing in the future of finance, but we are actively building the rails that allow real-world assets to seamlessly move on-chain securely.”
J.P. Morgan’s Commercial & Investment Bank operates globally across banking services including payments, markets operations and securities services in over 100 countries worldwide.