- JPMorgan executed a commercial paper issuance on Solana, settling with USDC.
- Institutional investors favor on-chain instruments for faster, efficient settlement cycles.
- Tokenized securities gain traction as firms integrate blockchain into capital markets.
JPMorgan expanded its digital asset strategy with a new commercial paper issuance executed directly on the Solana blockchain. The bank structured the short term instrument for Galaxy Digital Holdings and completed delivery versus payment using USDC for settlement, moving the entire flow onto public infrastructure rather than a private ledger.
The transaction marks a shift in how large financial institutions test blockchain. Instead of limiting trials to internal networks, JPMorgan used a high throughput public chain to issue, distribute, and settle real world debt. That choice signals more confidence in public blockchains as banks look for faster funding tools and programmable settlement.
Related: JPMorgan Introduces New IBIT-Linked Note Aligned With Bitcoin Halving Cycle
Institutional Demand Builds for On-Chain Money Markets
Market participants reported rising interest in on chain money market products.
According to the press release, Coinbase and Franklin Templeton purchased the issuance and supported the funding round. Each firm viewed on-chain instruments as a way to shorten settlement cycles and reduce operational friction.
Additionally, Galaxy structured the issuance and used it to strengthen its short-term funding program. The firm planned to expand similar offerings as interest from major allocators increased.
Nick Ducoff, Head of Institutional Growth at the Solana Foundation, framed the transaction as a turning point for public chain usage in regulated finance, arguing that large institutions now view high throughput networks as credible rails for capital markets workflows. That narrative reinforces Solana’s pitch as an infrastructure layer for regulated tokenization, not just consumer trading.
Tokenized Securities Gain Ground Across Major Institutions
JPMorgan built the on-chain commercial paper token and managed issuance and redemption flows directly through its architecture, while Circle’s USDC handled settlement for real time movement of funds. This combination allowed investors to track servicing and lifecycle events directly on chain, tightening the link between cash and securities.
Galaxy said the approach fits its broader plan to expand institutional adoption of tokenized instruments across treasury, lending, and structured products. The firm expects more clients to request tokenized exposure as they gain familiarity with wallet tooling, custody controls, and audited smart contract logic.
Brett Tejpaul, Co-CEO of Coinbase Institutional, described the transaction as an example of how major market players now use public infrastructure for real financial activity. He noted that Coinbase supported the product through custody tools, wallet infrastructure, and liquidity services. Hence, the company aimed to build a foundation that supports long-term institutional demand.
Related: JPMorgan Warns Strategy Inc. As Too Crypto-Heavy For MSCI Indices
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Source: https://coinedition.com/jpmorgan-arranges-50m-tokenized-debt-on-solana-galaxy-digital-issues-usdc-settles/
