JP Morgan has executed one of the first debt issuances on a public blockchain. They conducted an offering of American commercial papers for Galaxy Digital Holdings LP on the Solana network.
They announced the transaction on December 11. Coinbase and Franklin Templeton purchased it, and all settlement occurred in Circle's stablecoin USDC. This is the first time this has happened in the commercial paper market.
Wall Street is no longer experimenting
The deal represents a clear shift in JP Morgan's blockchain strategy. Previously, they mostly used their private Onyx network and JPM Coin. Now they have chosen Solana's public infrastructure, demonstrating that the network can handle financial products at an institutional level.
"This issuance clearly shows how public blockchains can improve capital markets," says Jason Urban, Global Head of Trading at Galaxy. Franklin Templeton's Head of Innovation Sandy Kaul adds that institutions are no longer just testing blockchain—they are conducting transactions at scale.
JP Morgan acted as the organizer and created the USCP token on the chain. They secured the settlement model delivery-versus-payment (DVP), where asset and payment are exchanged simultaneously. DVP reduces counterparty risk and makes the model important for institutions. Galaxy Digital Partners LLC was the structuring agent, marking Galaxy's first commercial paper issuance.
Coinbase had two roles—both as an investor and as a provider of infrastructure. They offered custody of private keys, wallet services, and management of USDC deposits and withdrawals. The collaboration between traditional finance and crypto shows that the ecosystem is now ready for widespread use.
Why Solana and USDC
Their choice of Solana highlights technical advantages such as speed, scalability, and low transaction fees. The network can handle thousands of transactions per second, which is beneficial for large institutions that require efficiency and reliability. Even though Ethereum is large in tokenization, Solana's low costs provide an advantage for frequent and cost-sensitive financial applications.
Circles stablecoin USDC also played a crucial role. According to Circle's reports, USDC has enabled value transfers of over 850 billion USD worldwide. USDC supports real-time settlement for standard financial transactions. Using USDC for traditional debt instruments is a significant step for stablecoins.
Strong finances support the deal
The transaction strengthens Galaxy's short-term financing as the company shows strong numbers. For Q3 2025, they reported 629 million USD in adjusted EBITDA, which is a record. By June 30, 2025, Galaxy had 2.6 billion USD in equity and 1.2 billion USD in cash and stablecoins. Therefore, they are well-positioned to expand financing on blockchain.
JP Morgan lends a lot of credibility to the project. JP Morgan has 40.1 trillion USD in assets under custody, 1.11 trillion USD in deposits, and operates in over 100 countries. The bank's support for public blockchain infrastructure is significant for institutional players.
SOL does not move despite historic news
Despite how special the transaction is, Solana's own token SOL has only reacted slightly in price. On December 12, SOL trades around 136 USD, which is down 2.25% for the week. SOL briefly rose above 145 USD on December 9-10 before the price fell again.
The weak price reaction may indicate that the market has already priced in institutional bets. General market conditions and profit-taking may also have influenced and caused the news to have less impact.
