JPMorgan successfully facilitated the first issuance of U.S. commercial paper on a public blockchain, with the issuance executed on the Solana network for Galaxy Digital Holdings LP.
This transaction was announced on December 11, and was purchased by Coinbase and Franklin Templeton. All settlements were conducted using Circle's USDC stablecoin, marking the first case in the commercial paper market.
Wall Street is no longer experimenting.
This transaction marks a significant departure from the private Onyx network and JPM Coin-based strategy previously used by JP Morgan. By choosing Solana's public infrastructure, a major Wall Street institution has effectively validated the network's capability to handle institutional-grade financial products.
"This issuance case clearly demonstrates how public blockchain can improve the way capital markets operate." – Galaxy Global Trading Head Jason Urban.
Franklin Templeton's Chief Innovation Officer Sandy Cole stated, "Institutions are no longer just experimenting with blockchain but are actually utilizing it for large-scale transactions."
JP Morgan, as the arranger, created on-chain USCP tokens and also supported real-time payment (DVP) settlement. The DVP model eliminates counterparty risk by ensuring that asset transfers and payments occur simultaneously, which is essential for institutional investor adoption. Galaxy Digital Partners LLC led the first commercial paper issuance as the structured lead underwriter.
Coinbase, as an investor and infrastructure provider, offered private key custody and wallet services, as well as USDC on/off-ramp functionality. Collaboration between traditional financial firms and crypto-based companies signifies a step closer to the maturity of an ecosystem that facilitates mainstream adoption.
Reasons for Solana and USDC
The reason for choosing Solana lies in its technical advantages. Speed, scalability, and low transaction fees are its strengths. Solana can process thousands of transactions per second, making it suitable for institutional operations where efficiency and reliability are crucial. While Ethereum still stands out in the tokenization market, Solana is more competitive for high-frequency, cost-sensitive financial applications in terms of cost efficiency.
Circle's USDC stablecoin has also played an important role. According to Circle's official report, USDC has supported over $850 billion in value transfers globally and enabled real-time payments compliant with regulations. The use of USDC as a payment currency for traditional debt products is an innovation in terms of stablecoin utility.
Strong finances, backed by transactions
With this transaction, Galaxy has strengthened its short-term funding capabilities amidst strong financial performance. Galaxy recorded an adjusted EBITDA of $629 million in Q3 2025, achieving the highest quarterly performance ever. As of June 30, 2025, Galaxy holds $2.6 billion in equity and $1.2 billion in cash and stablecoins, laying the groundwork for expanding blockchain-based procurement channels.
JP Morgan's participation lends high credibility. JP Morgan has $40.1 trillion in custodial assets, $1.11 trillion in deposits, and operates in over 100 countries. The fact that JP Morgan supports public blockchain infrastructure holds great significance for institutional investors.
SOL, no change despite historical news
Despite such groundbreaking transactions, SOL, the native token of Solana, has seen limited price reaction. As of December 12, the SOL price is approximately $136, having dropped 2.25% over the past week. It briefly exceeded $145 on December 9-10 but has since returned to current levels.
The quiet price reaction indicates that the market has already anticipated institutional investor adoption. Profit-taking from recent gains and overall market conditions may also be somewhat offsetting positive news.
