JP Morgan has successfully arranged one of the first bond issuances on a public blockchain, executing the United States Commercial Paper offering for Galaxy Digital Holdings LP on the Solana network.
On December 11, an event was announced where the buyers were Coinbase and Franklin Templeton, and all settlements were conducted using Circle's USDC stablecoins – this was the first time a stablecoin was used for settlement in the commercial paper market.
Wall Street is no longer experimenting
This agreement marks a significant departure from JP Morgan's previous blockchain strategy, which was primarily based on the private Onyx network and JPM Coin. By choosing Solana's public infrastructure, the Wall Street giant has effectively reinforced the network's capability to handle institutional financial products.
“This issuance is a clear example of how public blockchains can enhance the functioning of capital markets,” said Jason Urban, Galaxy's Global Head of Trading. Franklin Templeton's Head of Innovation Sandy Kaul added that institutions are no longer just experimenting with blockchains – they are now executing large transactions using them.
JP Morgan acted as the organizer, created the USCP token on the chain, and facilitated the delivery-versus-payment (DVP) settlement. The DVP model eliminates counterparty risk by ensuring that assets and payments are exchanged simultaneously – which is crucial for institutional adoption. Galaxy Digital Partners LLC acted as the structuring advisor, and this was Galaxy's first commercial paper issuance.
Coinbase served as both an investor and an infrastructure service provider. It provided custody for private keys, wallet services, and USDC inflows and outflows. The collaboration between traditional financial institutions and crypto-native players demonstrates the ecosystem maturing for mainstream adoption.
Why Solana and USDC
Solana's selection was based on its technical strengths: speed, scalability, and low transaction costs. The network can handle thousands of transactions per second, which meets the needs of institutional operations that require efficiency and reliability. Although Ethereum remains prominent in tokenization, Solana's cost-effectiveness is an advantage in finance applications that demand high transaction volumes and cost sensitivity.
The USDC stablecoin from Circle had a similarly crucial role. According to Circle's official reports, USDC has enabled over $850 billion in value transfers globally and supported real-time, rule-based settlements. The use of the stablecoin in the settlement of traditional debt instruments is a significant breakthrough in the utility of stablecoins.
Strong economic data supports the trade
The event reinforces Galaxy's short-term financing prospects in a strong financial position. The company reported a $629 million adjusted EBITDA during Q3 2025, which was a record annual result. As of June 30, 2025, Galaxy's assets were $2.6 billion in equity and $1.2 billion in cash and stablecoins, providing a solid foundation to grow blockchain-based financial channels.
JP Morgan's participation brings significant credibility. JP Morgan has $40.1 trillion in assets under management, $1.11 trillion in deposits, and operations in over a hundred countries. Supporting the bank's public blockchain infrastructure sends a very strong message to institutional observers.
SOL remains unchanged despite historical news
Although it was a significant event, Solana's own token, SOL, has reacted moderately in price. On December 12, the price of SOL is around $136, which is a 2.25% decrease over the last week. The token briefly traded above $145 on December 9-10 but returned to current levels.
The muted reaction may reflect the market's future-oriented nature – institutional adoption has been long anticipated. Broader market conditions and profit-taking after recent rallies may also overshadow this positive news.
