JP Morgan has conducted one of the first debt issuances on a public blockchain, by issuing US Commercial Paper for Galaxy Digital Holdings LP on the Solana network.
The transaction, which was announced on December 11, was purchased by Coinbase and Franklin Templeton, with all settlements conducted in Circle's USDC stablecoin—a first for the commercial paper market.
Wall Street is no longer experimenting
The agreement marks a significant deviation from JP Morgan's previous blockchain strategy, which primarily utilized their private Onyx network and JPM Coin. By opting for Solana's public infrastructure, the Wall Street giant has effectively confirmed the network's ability to handle financial products at the institutional level.
“This issuance is a clear example of how public blockchains can enhance the functioning of capital markets,” said Jason Urban, Global Head of Trading at Galaxy. Franklin Templeton's head of innovation Sandy Kaul added that institutions are no longer just experimenting with blockchain—they are “transacting on it at scale.”
JP Morgan acted as facilitator and created the on-chain USCP token, facilitating delivery-versus-payment (DVP) settlement. The DVP model eliminates counterparty risk by ensuring that assets and payments are exchanged simultaneously—a critical point for institutional adoption. Galaxy Digital Partners LLC was the structuring agent and marked Galaxy's first issuance of commercial paper.
Coinbase had a dual role as both an investor and an infrastructure provider, offering private key custody, wallet services, as well as USDC in- and outflow. The collaboration between traditional finance and crypto players signals a growing ecosystem ready for wider adoption.
Why Solana and USDC
The choice of Solana reflects its technical advantages: speed, scalability, and low transaction costs. The network's ability to process thousands of transactions per second makes it well-suited for institutional operations with efficiency demands. While Ethereum remains a leader in tokenization, Solana's low costs make it attractive for frequent and cost-sensitive financial use cases.
Circle's USDC stablecoin played an equally crucial role. According to Circle's official reports, USDC has facilitated over $850 billion in value transfers globally and supports real-time settlement for regulatory-compliant financial operations. Its use as settlement for traditional debt instruments marks a breakthrough for stablecoin utility.
Strong economy supports the deal
The transaction strengthens Galaxy's short-term financing opportunities during a period of strong economic performance. The company reported $629 million in adjusted EBITDA for the third quarter of 2025—a record quarter. As of June 30, 2025, Galaxy had $2.6 billion in equity and $1.2 billion in cash and stablecoins, positioning them well to expand blockchain-based financing channels.
JP Morgan's participation lends significant credibility. JP Morgan has $40.1 trillion in assets under custody, $1.11 trillion in deposits, and operations in over 100 countries. The bank's support for public blockchain infrastructure sends strong signals to institutional players.
SOL unchanged despite historical news
Although the transaction is groundbreaking, Solana's own token, SOL, has shown a limited reaction in price. As of December 12, SOL is trading at around $136, down 2.25% in the last week. The token briefly rose above $145 on December 9-10 before falling back to current levels.
The muted reaction may reflect the market's forward-looking stance—institutional adoption has been anticipated for a long time. Other market conditions and profit-taking after recent rises may also overshadow the positive news.
