JPMorgan Solana issuance marks landmark on-chain commercial paper deal with Galaxy

In a move watched closely across Wall Street and crypto, JPMorgan Solana collaboration on a commercial debt deal is pushing public blockchains deeper into mainstream finance.

JPMorgan brings US commercial paper onto Solana

In a press release dated December 11, JPMorgan disclosed that it had arranged a US Commercial Paper (USCP) issuance for Galaxy Digital Holdings LP, an affiliate of Galaxy Inc., on the Solana blockchain. The transaction counts among the earliest US commercial paper offerings executed on a public network.

In this structure, JPMorgan acted as arranger, creating the on-chain USCP token and overseeing delivery-versus-payment settlement for the deal. Moreover, the bank handled the on-chain lifecycle of the instrument, aligning traditional processes with blockchain rails.

Meanwhile, Galaxy Digital Partners LLC structured the offering, while Coinbase Global Inc. and global investment manager Franklin Templeton purchased the issuance. This collaborative configuration linked multiple major institutions to the same public blockchain transaction, signaling growing comfort with tokenized debt.

According to the press statement, the USCP token is the first commercial paper offering from Galaxy. That said, the deal also enhances Galaxy’s short-term funding flexibility and connects the firm to a broader institutional investor base seeking blockchain-based money-market instruments.

Notably, both the issuance proceeds and redemption payments will be made in USDC stablecoins issued by Circle. However, this is described as a first for the US commercial paper market, where cash settlement traditionally relies on bank transfers rather than tokenized dollars.

Institutional demand and the future of tokenized markets

Scott Lucas, Head of Markets Digital Assets at JPMorgan, said the commercial debt transaction showcases institutional demand for digital assets and the broader potential of blockchain technology in capital markets. He stressed that the bank, as a user-focused institution, aims to meet evolving client appetite for digital asset exposure.

Lucas indicated that this structure demonstrates how tokenized instruments and delivery-versus-payment on public networks can streamline issuance and settlement. Moreover, the transaction underlines how traditional financial market infrastructure may gradually migrate toward open, programmable systems.

The JPMorgan Solana deal also adds to growing evidence that large financial institutions are experimenting beyond private chains. However, the project still relies on familiar legal frameworks and investor protections, blending on-chain execution with off-chain governance.

Galaxy, Coinbase, Solana and Franklin Templeton weigh in

In the same release, Jason Urban, Global Head of Trading at Galaxy, said the issuance shows how public blockchains can improve capital markets. He described bringing Galaxy’s first commercial paper on-chain, and structuring one of the earliest US deals of this kind, as a significant milestone for the firm.

Urban added that the project supports Galaxy’s vision of using open, programmable infrastructure to deliver institutional-grade financial products. Moreover, he highlighted the importance of working with JPMorgan, Coinbase, Solana, and Franklin Templeton to integrate these tools into daily trading and funding operations.

Sandy Kaul, Head of Innovation at Franklin Templeton, said institutional players are moving from pilot projects to live, on-chain transactions. She argued that deals like Galaxy’s issuance help create a more open, efficient, and resilient financial system while advancing adoption of digital infrastructure in traditional markets.

Nick Ducoff, Head of Institutional Growth at the Solana Foundation, called the issuance a key step toward bringing blockchain security and efficiency to institutional finance. That said, he suggested that replicating this template across other issuers could accelerate the development of tokenized debt markets.

Brett Tejpaul, Co-CEO of Coinbase Institutional, noted that the transaction reflects how institutional finance is embracing public blockchain technologies. He emphasized Coinbase’s role as an investor, wallet provider, and custodian for the USCP token, reinforcing the importance of secure infrastructure for tokenized assets.

Implications for institutional blockchain finance and Solana

The issuance also underscores how public chains like Solana are positioning for institutional-grade activity, particularly in high-frequency settlement and tokenized fixed income. Moreover, on-chain settlement in USDC may offer operational efficiencies over legacy cash rails, especially for cross-border flows.

Market data cited alongside the announcement showed SOL trading at $137 on the 1D chart, based on the SOLUSDT pair on TradingView.com. However, price action remains only one dimension of the story, as infrastructure use by large banks and asset managers could prove more consequential over time.

This transaction will likely serve as a reference case for institutional blockchain finance, combining a regulated instrument, well-known issuers, and settlement in a major stablecoin. As more participants examine tokenization, future deals may extend the model to longer-dated debt, repo, and structured products.

Overall, the Galaxy commercial paper deal on Solana, arranged by JPMorgan and supported by Coinbase and Franklin Templeton, illustrates how on-chain issuance, trading, and settlement are moving from concept to practice in global markets.