JPMorgan issued a $50 million commercial paper on Solana using USDC for institutional investors.
Galaxy Digital completed its first US commercial paper issuance with on-chain token management.
Public blockchain adoption for debt issuance is growing with banks and funds exploring tokenized assets.
JPMorgan Chase & Co. became one of the first major global banks to issue a $50 million U.S. commercial paper using a public blockchain. The bank chose the Solana blockchain to execute the issuance. Coinbase Global and Franklin Templeton purchased the debt instrument using USD Coin (USDC), a stablecoin issued by Circle.
https://twitter.com/coinbureau/status/1999185517108429104?s=20
JPMorgan has developed an on-chain USCP token to process both redemption and issuance flows. The trading also indicates the increasing presence of tokenized assets and stablecoins in the standard debt markets.
Shift from Private to Public Blockchain
Previously, JPMorgan conducted blockchain-based issuances only on its private networks. These included a municipal bond for the City of Quincy and commercial paper for a Singapore-based bank. The bank historically favored its Ethereum-based ledger, Quorum, and other private blockchain projects.
Its strategy focused on “blockchain, not Bitcoin,” despite CEO Jamie Dimon’s past criticism of Bitcoin. The bank has steadily invested in blockchain infrastructure and now allows institutional clients to use Bitcoin and Ethereum as loan collateral. JPMorgan recently launched JPM Coin (JPMD) on the Base blockchain for institutional 24/7 settlement.
Institutional Adoption and Market Impact
The Galaxy Digital debt token represents the firm’s first U.S. commercial paper issuance. Both issuance and redemption were processed with USDC. Coinbase provided private-key custody and wallet services for the USCP token. Galaxy Digital previously experimented with tokenizing its SEC-registered stock on Solana.
The firm also backs Forward Industries (FORD), a SOL treasury exploring blockchain-based financialization. The issuance demonstrates strong institutional interest in blockchain-based debt instruments. Forward Industries holds the largest public treasury of SOL. Franklin Templeton has also actively participated in tokenizing U.S. government securities.
Blockchain Debt Trends Expand Globally
The use of public blockchains for debt issuance has gained momentum internationally. In 2024, B2C2 issued the first fully tokenized bond on Ethereum. Singapore’s Oversea-Chinese Banking Corp launched a $1 billion digital U.S. commercial paper program using JPMorgan’s Digital Debt Service.
Societe Generale issued its first U.S. digital bond via Broadridge Financial Solutions on the Canton blockchain. Guggenheim Treasury Services and DBS also utilized Ethereum and the XRP Ledger for commercial paper and structured notes. These developments indicate a growing trend in modernizing legacy financial markets through blockchain technology.
