By Pritam Biswas and Anirban Sen
Dec 11 (Reuters) – JP Morgan said on Thursday it had issued a U.S. commercial paper for Galaxy Digital Holdings on the Solana blockchain, marking “an important milestone in the broader institutional adoption of digital assets.”
Cryptocurrency exchange Coinbase Global and investment management firm Franklin Templeton purchased the commercial paper, a short-term, unsecured debt instrument.
The deal is one of the first to use blockchain for securities issuance and servicing, which JP Morgan called a “global milestone” as traditional finance begins to “cross paths with new technology.”
The debt deal is worth $50 million, according to a person familiar with the matter.
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 and permissioned blockchain platform include a municipal securities offering for “The City of Quincy” in April 2024 and a U.S. commercial paper offering for the Oversea-Chinese Banking Corporation in August 2025.
JP Morgan acted as arranger in the deal and created the USCP token on-chain. The issuance and redemption proceeds will be paid in USDC, a stable coin issued by Circle.
Stablecoins are cryptocurrencies designed to track the value of a real currency, usually the US dollar.
(Reporting by Pritam Biswas in Bangalore and Anirban Sen in New York; editing by Shailesh Kuber)
