JP Morgan has successfully managed to issue debt instruments on a public blockchain, being one of the first to issue U.S. Commercial Paper for Galaxy Digital Holdings LP on the Solana network.
This transaction, announced on December 11, was purchased by Coinbase and Franklin Templeton, with the entire settlement process conducted through Circle's USDC coin, marking a first for the Commercial Paper market.
Wall Street has stopped experimenting.
This agreement marks a significant shift from JP Morgan's previous blockchain strategy that focused on using the private Onyx network and JPM Coin. However, by opting for the public infrastructure of Solana, the Wall Street leader has demonstrated the capabilities of this network to truly support institutional-level financial products.
Jason Urban, the global head of trading at Galaxy, stated that this is a clear example of how public blockchain can enhance capital market operations, while Sandy Kaul, head of innovation at Franklin Templeton, mentioned that institutions are no longer just experimenting with blockchain; each institution is now conducting transactions on the blockchain on a large scale.
JP Morgan acts as the structurer, registering the USCP token on-chain and facilitating DVP payments. This DVP model eliminates risk between counterparties by ensuring that the exchange of assets occurs simultaneously with payment, which is a crucial feature for institutional participation. Galaxy Digital Partners LLC serves as the structurer, marking the first time Galaxy has issued Commercial Paper.
Coinbase plays a dual role as both an investor and an infrastructure provider, offering custody services for private keys, wallet services, and on-ramps/off-ramps for USDC. The collaboration between traditional finance and crypto companies illustrates a growing ecosystem ready for widespread use.
Why Solana and USDC?
The choice of Solana stems from technical advantages such as speed, scalability, and low transaction costs. This network can process thousands of transactions per second, making it suitable for institutional operations that require efficiency and reliability. While Ethereum still stands out in the tokenized space, the cost-effectiveness makes Solana well-suited for high-frequency transactions with a focus on low costs.
Circle's USDC token has played an equally important role. According to an official report from Circle, USDC has facilitated the transfer of over 850 billion USD globally and supports real-time settlement for transactions under regulatory requirements. Choosing USDC as the currency for settlement for traditional debt securities is therefore considered a significant step in the adoption of stablecoins.
Strong financial position supports the deal.
This transaction helps stabilize Galaxy's short-term fundraising amidst strong company performance, with an adjusted EBITDA reported at 629 million USD for Q3 2025, which is a record high. As of June 30, 2025, Galaxy had shareholder equity of 2.6 billion USD along with cash and stablecoins of 1.2 billion USD, which enables the company to enhance its fundraising channels through blockchain.
JP Morgan's involvement lends high credibility to this transaction. JP Morgan has assets under management of 40.1 trillion USD, deposits of 1.11 trillion USD, and operations in over 100 countries. This bank's support for public blockchain infrastructure is sure to instill confidence among institutional observers as well.
SOL does not budge even with historical news
Although this transaction is significant, the native token of the Solana network, or SOL, has reacted quite limitedly in terms of price. As of December 12, SOL was trading at approximately 136 USD, down 2.25% over the past week. However, this token had previously soared above 145 USD on December 9-10 before retracting to its current level.
The relatively muted response may reflect the market's forward-looking nature, as the entry of institutions has been anticipated for a long time. Meanwhile, the broader market conditions and the latest profit-taking may also overshadow this positive news.
