JP Morgan has successfully arranged one of the first-ever debt issuances on a public blockchain, executing a US Commercial Paper offering for Galaxy Digital Holdings LP on the Solana network.
The transaction, announced December 11, was purchased by Coinbase and Franklin Templeton, with all settlement conducted in Circle’s USDC stablecoin—a first for the commercial paper market.
Wall Street No Longer Experimenting
The deal represents a significant departure from JP Morgan’s previous blockchain strategy, which relied primarily on its private Onyx network and JPM Coin. By choosing Solana’s public infrastructure, the Wall Street giant has effectively validated the network’s capability to handle institutional-grade financial products.
“This issuance is a clear example of how public blockchains can improve the way capital markets operate,” 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’re “transacting on it in a big way.”
JP Morgan served as Arranger, creating the on-chain USCP token and facilitating delivery-versus-payment (DVP) settlement. The DVP model eliminates counterparty risk by ensuring that assets and payments are exchanged simultaneously—a critical feature for institutional adoption. Galaxy Digital Partners LLC acted as the Structuring Agent, marking Galaxy’s first-ever commercial paper issuance.
Coinbase played dual roles as both an investor and an infrastructure provider, offering private-key custody, wallet services, and USDC on- and off-ramp capabilities. The collaboration between traditional finance and crypto-native firms signals a maturing ecosystem ready for mainstream adoption.
Why Solana and USDC
Solana’s selection reflects its technical advantages: speed, scalability, and low transaction costs. The network’s ability to process thousands of transactions per second made it well-suited for institutional operations requiring efficiency and reliability. While Ethereum remains prominent in the tokenization landscape, Solana’s cost efficiency positions it for high-frequency, cost-sensitive financial applications.
Circle’s USDC stablecoin played an equally pivotal role. According to Circle’s official reports, USDC has enabled over $850 billion in value transfers globally, supporting real-time settlement for compliant financial operations. Its use as settlement currency for traditional debt instruments represents a breakthrough for stablecoin utility.
Strong Financials Back the Deal
The transaction strengthens Galaxy’s short-term funding capabilities amid robust financial performance. The company reported $629 million in adjusted EBITDA for Q3 2025—a record quarter. As of June 30, 2025, Galaxy held $2.6 billion in equity and $1.2 billion in cash and stablecoins, positioning it well to expand blockchain-based funding channels.
JP Morgan‘s involvement adds significant credibility. JP Morgan holds $40.1 trillion in assets under custody, $1.11 trillion in deposits, and operations spanning more than 100 countries. The bank’s endorsement of public blockchain infrastructure carries substantial weight for institutional observers.
SOL Unmoved Despite Historic News
Despite the landmark nature of the transaction, Solana’s native token, SOL, has shown a limited price reaction. As of December 12, SOL trades at approximately $136, down 2.25% over the past week. The token briefly spiked above $145 on December 9-10 before retreating to current levels.
Source: BeInCrypto
The muted response may reflect the market’s forward-looking nature—institutional adoption has long been anticipated. Broader market conditions and profit-taking following recent gains could also be overshadowing the positive news.
