December 11 (Reuters) – JP Morgan (JPM.N)open a new tab has arranged a short-term bond for Galaxy Digital Holdings on the Solana blockchain, the bank announced Thursday, marking a significant milestone in broader institutional adoption of digital assets.
Cryptocurrency exchange Coinbase Global (COIN.O)open a new tab and investment management firm Franklin Templeton purchased commercial paper, an unsecured short-term debt instrument.
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The $50 million debt deal comes at a time when tokenization is rapidly increasing, particularly in the United States, thanks to the adoption of new regulations. President Donald Trump’s administration has eased regulation of the entire crypto industry, paving the way for a boom in the valuation of companies in the sector and rapid growth in crypto-related securities.
The deal is one of the first to use blockchain for securities issuance and servicing, and comes as traditional finance begins to intersect with the new technology. Blockchain platforms, such as Solana, which was founded in 2017 and launched its mainnet three years later, have attracted strong interest from traditional financial institutions due to their high speed and low transaction costs.
“In the first half of next year, we intend to build on this momentum by exploring how this structure and JP Morgan’s role in it can be expanded, not only in terms of the investor and issuer base, but also in terms of the type of securities,” Scott Lucas, head of digital asset markets at JP Morgan, said in an interview with Reuters.
“We believe there is strong demand for this type of innovation, and we are committed to supporting our customers and the market as we move forward.”
Previous issuances on JP Morgan’s private, permissioned blockchain platform include a municipal securities offering for the city of Quincy in April 2024 and a U.S. commercial paper offering for Oversea-Chinese Banking Corporation in August 2025.
JP Morgan acted as arranger in the transaction and created the USCP token on-chain. Proceeds from the issuance and redemption will be paid in USDC, a stablecoin issued by Circle (CRCL.N)open a new tab.
Stablecoins are cryptocurrencies designed to track the value of a real currency, usually the US dollar.
Reporting by Pritam Biswas in Bengaluru and Anirban Sen in New York; Editing by Shailesh Kuber and Andrea Ricci
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Anirban Sen is market structure editor at Reuters in New York, where he leads the news agency’s coverage of stock exchanges and market-making firms, including Jane Street and Citadel Securities. Previously, Anirban was Mergers and Acquisitions Editor at Reuters, leading a team of journalists who regularly broke market news on America’s largest corporate deals. Some of his scoops include Mars’ $36 billion deal for snack maker Kellanova, design software company Synopsys’ $35 billion deal for Ansys and buyout firm GTCR’s $18.5 billion deal for merchant services provider Worldpay. In 2023, Anirban was part of a Reuters team that won a Gerald Loeb Award for the agency’s coverage of the collapse of FTX. After starting at Reuters in Bangalore in 2009, he left the role in 2013 to work as a technology affairs reporter at several major business news outlets in India, including The Economic Times and Mint. Anirban joined Reuters in 2019 as finance editor, to lead a team of journalists in India, covering everything from investment banking to venture capital.
