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JP Morgan arranged a $50 million US commercial paper deal for Galaxy Digital Holdings. It recorded the issuance on the Solana blockchain. The structure tokenized the short-term, unsecured debt instrument. It also handled key on-chain servicing steps.
Commercial paper helps companies fund working capital needs. It does so without issuing longer-dated bonds. In this transaction, Galaxy issued the debt through a blockchain format. It avoided standard depository and clearing workflows. The approach targets faster processing and clearer audit trails for participants.
Coinbase Global and investment manager Franklin Templeton purchased the tokenized commercial paper. Coinbase supported the workflow as a wallet provider. This role connected investment activity to on-chain settlement.
JP Morgan created an on-chain token, described as a USCP token. The token represents the commercial paper. The bank used it to manage issuance and redemption flows. The parties settled the sale proceeds and future repayments in USDC. Circle issues the dollar-pegged stablecoin.
Stablecoins aim to track the value of a national currency. Many track the US dollar. In this deal, USDC served as the payment rail. It moved value between the issuer and the investors. The design links tokenized securities with programmable blockchain transfers.
Market participants have increased tokenization pilots for real-world assets. These pilots use public and private blockchains. Reuters reported rapid tokenization growth in the United States. It linked the trend to new regulatory developments. The report also noted that the Trump administration has eased regulations for parts of the crypto industry.
JP Morgan has already issued securities on its private, permissioned blockchain platform. Those projects included a municipal securities offering for the City of Quincy in April 2024. They also included a US commercial paper issuance for Oversea-Chinese Banking Corporation in August 2025. The Galaxy transaction differs because it uses Solana. The network supports high throughput and lower transaction costs.
Consultancies and market groups have published estimates for the tokenization market. Boston Consulting Group and Ripple projected that tokenized assets could reach $18.9 trillion by 2033. Other analysts have forecast a smaller tokenized bond market by 2030. These projections help explain ongoing tests across multiple asset classes.
Solana launched its mainnet in 2020 after its 2017 founding. Banks and asset managers have tracked network performance. They have assessed it for public-chain settlement. JP Morgan’s markets digital assets team said it plans to expand the structure in the first half of 2026. It expects more issuers, more investors, and new security types.
