JPMorgan arranges commercial paper issuance on Solana blockchain

JPMorgan Chase & Co. (NYSE: JPM) arranged a U.S. commercial paper issuance for Galaxy Digital Holdings LP on the Solana public blockchain, with Coinbase Global Inc. (NASDAQ: COIN) and Franklin Templeton serving as investors, according to a company statement.

The transaction represents one of the earliest debt issuances executed on a public blockchain and among the first in the U.S. to use blockchain technology for securities issuance and servicing. JPMorgan acted as arranger, created the on-chain commercial paper token, and facilitated delivery-versus-payment settlement of the primary issuance.

Both issuance and redemption proceeds were paid in USDC stablecoins issued by Circle. The commercial paper format provides Galaxy with short-term funding capabilities and access to institutional investors incorporating blockchain-based money-market instruments.

Galaxy Digital Partners LLC acted as structuring agent on the transaction, which marks Galaxy's first commercial paper issuance. Coinbase provided private-key custody and wallet services for the newly issued commercial paper token and delivered on/off ramp services for USDC.

"This trade demonstrates institutional appetite for digital assets and our capability to securely bring new instruments on-chain using Solana," said Scott Lucas, Head of Markets Digital Assets at JPMorgan.

The transaction involved collaboration between JPMorgan, Galaxy, Coinbase, Franklin Templeton, and the Solana Foundation to execute the blockchain-based commercial paper issuance.

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