JP Morgan successfully completed one of the first debt issuance conducted on a public blockchain. A commercial paper issuance was made via the Solana network on behalf of Galaxy Digital Holdings LP.
In the transaction announced on December 11, Coinbase and Franklin Templeton were involved as buyers. All settlements were made through Circle's USDC stablecoin. This marks a first in the commercial paper market.
Wall Street is No Longer Experimenting
This agreement significantly deviates from JP Morgan's previous blockchain strategy. The bank previously used the private Onyx network and JPM Coin predominantly. Now, by choosing Solana's public infrastructure, it has taken a significant step and has practically confirmed that the major Wall Street player Solana is capable of carrying financial products at the institutional level.
Galaxy's Global Trading Head Jason Urban said, 'This issuance is a clear example of how public blockchains can improve the functioning of capital markets.' Sandy Kaul, the Head of Innovation at Franklin Templeton, stated that institutions are no longer just experimenting with blockchain; 'they are now conducting large-scale transactions via blockchain.'
JP Morgan acted as the intermediary that created the on-chain USCP token and facilitated settlement against delivery (DVP). The DVP model eliminates counterparty risk by simultaneously exchanging assets and payments, which is of great importance in the corporate finance world. Galaxy Digital Partners LLC participated in the project as the Structuring Intermediary, and the company's first commercial paper issuance also took place on this occasion.
Coinbase played a significant role as both an investor and an infrastructure provider. The platform offered private key custody, wallet services, and USDC deposit-withdrawal options. This collaboration between traditional finance and crypto-focused firms indicates that the ecosystem is maturing and ready for mass adoption.
Why Solana and USDC are Preferred
There are technical advantages behind the preference for Solana: speed, scalability, and low transaction costs. The network's ability to easily process thousands of transactions per second creates an ideal ground for transactions that require efficiency and reliability in the institutional space. While Ethereum continues to lead in the tokenized sector, Solana stands out for high-volume and cost-sensitive financial applications due to its cost advantage.
Circle's USDC stablecoin has also played an equally decisive role. According to Circle's official reports, over $850 billion in value has been transferred globally with USDC to date. This opens the door for real-time settlement in regulatory-compliant financial transactions. The use of USDC as a settlement currency in traditional debt instruments takes the application of stablecoins a step further.
Strong Financial Support for the Agreement
This transaction strengthened Galaxy's short-term financing capabilities. The company announced its adjusted EBITDA for the third quarter of 2025 as $629 million, breaking its historical record. As of June 30, 2025, Galaxy has $2.6 billion in equity and $1.2 billion in cash and stablecoins. This shows that they are in a strong position to expand their blockchain-based financing channels.
JP Morgan's presence adds significant confidence to the transaction. With $40.1 trillion in assets under custody, $1.11 trillion in deposits, and operations in over 100 countries, the bank's massive scale indicates a significant milestone for institutions as it endorses public blockchain infrastructure.
SOL Stagnates Despite Historic News
Despite the transaction being groundbreaking in the industry, Solana's native token SOL showed limited response on the price side. As of December 12, SOL is trading at around $136; it has lost 2.25% in value over the past week. At one point, on December 9-10, it briefly tested above $145 but then retreated to the current levels.
The market's stagnant response may stem from the expectation of crypto market players focused on the term. Institutional adoption has been a long-awaited development. Additionally, investors' profit-taking after the recent surge and overall market conditions seem to have overshadowed positive news.
