JPMorgan has arranged one of the first US commercial paper issuances executed entirely on a public blockchain, completing a Solana-based deal for Galaxy Digital Holdings LP.
According to an announcement on 11 Dec, the transaction saw Galaxy issue US Commercial Paper (USCP), which Coinbase and asset manager Franklin Templeton subsequently purchased. CP is a debt instrument used by companies to borrow money from others, usually for short-term corporate needs.
The deal marks a significant structural shift for institutional finance. While banks have previously dabbled with private ledgers, this transaction saw US debt issued, serviced, and redeemed on a public chain, with settlement finalized in Circle’s USDC stablecoin. JPMorgan acted as the arranger, creating the onchain USCP token and facilitating the delivery-versus-payment settlement.
Public chain validation
The move represents Galaxy’s first commercial paper issuance and expands its short-term funding channels by tapping a growing pool of institutional investors comfortable with blockchain-based money-market instruments.
Galaxy Digital Partners served as the structuring agent, while Coinbase provided private-key custody and wallet services. Franklin Templeton, a buyer in the deal, stated that the transaction confirms blockchain integration is becoming a core component of institutional portfolio construction, citing Solana’s throughput and settlement speeds as key factors for its selection over private alternatives.
Expanding the net
JPMorgan noted that the issuance demonstrates a widening institutional appetite for digital assets and proves that public chains can integrate securely with traditional market infrastructure.
The deal follows the bank's broader push into blockchain, including the rebranding of its Onyx network to Kinexys and its ongoing deposit token initiatives. It also aligns with recent signals that the firm plans to allow institutional clients to use Bitcoin as collateral for loans by late 2025, a pragmatic pivot for a bank whose CEO, Jamie Dimon, has historically been a vocal critic of the asset class.
