Galaxy Digital completes debt offering on public blockchain with Coinbase and Franklin Templeton as investorsGalaxy Digital completes debt offering on public blockchain with Coinbase and Franklin Templeton as investors

JP Morgan Arranges Commercial Paper Issuance on Solana Blockchain

2025/12/12 11:45
JP Morgan Arranges Commercial Paper Issuance on Solana Blockchain

JP Morgan has arranged a U.S. commercial paper issuance for Galaxy Digital Holdings LP on the Solana blockchain, with Coinbase and Franklin Templeton serving as purchasers, according to a December 11 announcement from the investment bank.

The transaction represents one of the earliest instances of debt securities being issued on a public blockchain in the United States, according to the bank. JP Morgan served as arranger and created the on-chain commercial paper token, while facilitating delivery-versus-payment settlement for the primary issuance.

Both issuance and redemption proceeds were paid in USDC stablecoins from Circle, marking what JP Morgan described as a first for the U.S. commercial paper market.

Galaxy Digital Partners LLC acted as structuring agent on the deal, which represents the firm's first commercial paper issuance. Jason Urban, global head of trading at Galaxy, said the transaction demonstrated how public blockchains can enhance capital markets operations.

The issuance attracted participation from major institutional players. Franklin Templeton's head of innovation, Sandy Kaul, said institutions are now transacting on blockchain "in a big way" rather than merely experimenting with the technology.

Coinbase played dual roles as both investor and infrastructure provider. Brett Tejpaul, co-CEO of Coinbase Institutional, said the company provided private-key custody and wallet services for the newly issued token, as well as on-ramp and off-ramp services for USDC.

Scott Lucas, head of markets digital assets at JP Morgan, characterized the transaction as an important step toward understanding blockchain's role in future financial markets, demonstrating institutional appetite for digital assets.

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