JP Morgan announced that it has arranged a U.S. commercial paper issuance for Galaxy Digital Holdings LP on the Solana blockchain, marking what the bank described as one of the earliest examples of debt securities being issued on a public blockchain in the United States. The transaction, disclosed on December 11, involved Coinbase and Franklin Templeton as initial purchasers and introduced a new model for executing traditional financial instruments through decentralized infrastructure.
As part of the issuance process, JP Morgan acted as the arranger while also creating the commercial paper token that represented the on-chain version of the security. The bank facilitated a delivery-versus-payment mechanism to settle the primary issuance, a structure typically used in traditional markets to reduce counterparty risk. In this case, both issuance proceeds and redemption flows were handled entirely in USDC, the stablecoin issued by Circle. The bank noted that this represented the first time the U.S. commercial paper market had used a stablecoin for end-to-end settlement.
Galaxy Digital Partners LLC served as the structuring agent for the deal, which was the firm’s first commercial paper issuance. Leadership at Galaxy indicated that the transaction illustrated how public blockchains could introduce greater efficiency and transparency into capital market operations. They emphasized that executing the instrument on Solana allowed participants to benefit from the network’s speed and programmability while maintaining the operational requirements expected by institutional investors.
The issuance drew interest from several prominent financial institutions. Franklin Templeton, one of the participating buyers, underscored that institutions are increasingly engaging in blockchain-based transactions at scale rather than simply experimenting with pilot projects. Its executives conveyed that the deal demonstrated how digital assets and tokenized instruments are moving further into the mainstream of institutional finance.
Coinbase also played a crucial role by operating as both investor and infrastructure provider. According to the announcement, the firm supplied private-key custody solutions and wallet management for the newly minted commercial paper token. It also supported the transaction by providing USDC on-ramp and off-ramp services, ensuring seamless movement between fiat-backed stablecoins and blockchain-settled instruments.
Wall Street is putting the blockchain to work in capital markets.
Today, @jpmorgan arranged a US commercial paper issuance for @galaxyhq on @solana – one of the first debt securities issued on a public blockchain in the U.S., with tokenization, USDC rails, and custody powered by… pic.twitter.com/49CzKYalcQ
— Coinbase Institutional 🛡️ (@CoinbaseInsto) December 11, 2025
Representatives from JP Morgan remarked that the issuance helped demonstrate how blockchain could fit into the future landscape of capital markets. They suggested that the deal highlighted growing institutional demand for digital asset infrastructure and tokenized financial products. The bank noted that executing a conventional short-term debt instrument on Solana showed the potential for decentralized networks to support large-scale financial issuances with the speed and reliability required by regulated institutions.
A Milestone for Onchain Institutional Finance
Industry analysts see the deal as a meaningful step toward integrating blockchain technology within mainstream financial markets. The ability to tokenize commercial paper, settle proceeds in stablecoins, and complete the entire workflow on a public chain signals rising confidence in onchain settlement mechanisms. Observers also noted that the collaboration between traditional finance players and digital-native firms indicated expanding alignment around tokenization as a pathway to more efficient, transparent markets.
The partnership among JP Morgan, Galaxy Digital, Coinbase, and Franklin Templeton reflects a growing trend of institutions experimenting with the issuance of tokenized assets, particularly as regulatory clarity improves and blockchain infrastructure matures. For the organizations involved, the successful execution of the transaction is being framed as a preview of how debt, equity, and other financial instruments might be issued and traded in future fully digital markets.