JPMorgan Executes Landmark Tokenized Commercial Paper Deal on Solana for Galaxy Digital

Source: ETHNews Original Title: JPMorgan Executes Landmark Tokenized Commercial Paper Deal on Solana for Galaxy Digital Original Link: https://www.ethnews.com/jpmorgan-executes-landmark-tokenized-commercial-paper-deal-on-solana-for-galaxy-digital/ JPMorgan has completed a milestone transaction in traditional finance and blockchain integration, arranging the first-ever tokenized U.S. commercial paper issuance for an affiliate of Galaxy Digital Holdings. The deal, announced December 11, 2025, marks one of the earliest examples of U.S. corporate debt being issued and processed entirely on a public blockchain.

A New Class of Tokenized Debt on Solana

At the center of the transaction is the USCP token, a Solana-based short-term debt instrument created by JPMorgan to replicate traditional commercial paper in a digital, on-chain format. Issuance and redemption flows were settled using Circle’s USDC stablecoin, enabling a fully blockchain-native capital raise.

An affiliate of Galaxy Digital Holdings LP served as the issuer, while a certain compliant platform and Franklin Templeton purchased the commercial paper. The compliant platform provided private-key custody and wallet infrastructure for the tokenized asset, ensuring institutional-grade safekeeping.

Institutional Collaboration Across TradFi and Crypto

Key participants in the transaction included:

• JPMorgan – Arranger and creator of the USCP token
• Galaxy Digital affiliate – Issuer of the commercial paper
• A compliant platform & Franklin Templeton – Investors purchasing the debt
• A compliant platform – Custodian and wallet-service provider

The coordination among a major U.S. bank, leading crypto institutions, and a global asset manager reflects a rapidly increasing willingness to use public blockchain rails for real-world financial instruments.

A Breakthrough for On-Chain Capital Markets

For Galaxy Digital, the issuance represents its first U.S. commercial paper transaction, offering a lower-friction path to short-term financing. For JPMorgan, it demonstrates how bank-led structuring and liquidity activities can move beyond private blockchains into fully public networks like Solana without compromising regulatory or operational standards.

The initiative also signals a broader shift in institutional strategy: tokenization is no longer a pilot concept but an operational tool for real capital markets. Public blockchain execution—long viewed as technologically ambitious for regulated debt markets, is now becoming reality.

Setting the Stage for the Next Wave of Financial Tokenization

By executing an end-to-end issuance on Solana, this transaction challenges long-standing assumptions about settlement, custody, and investor participation under existing market rules. It also indicates growing confidence from regulators and major financial institutions that public blockchain infrastructure can support regulated instruments at scale.

As tokenized treasuries, money-market funds, and commercial paper gain traction, JPMorgan’s USCP issuance may be remembered as an early turning point, where institutional credit markets began shifting from traditional rails toward programmable, transparent, and globally accessible blockchain networks.