JPMorgan Arranges First Tokenized Commercial Paper on Solana

JPMorgan Chase has arranged the first tokenized commercial paper issuance on a public blockchain, executing a short-term debt offering for Galaxy Digital on the Solana network. The transaction, announced on December 11, was purchased by Coinbase and Franklin Templeton, with issuance and redemption settled entirely in Circle's USDC stablecoin.

The deal represents Galaxy Digital's inaugural commercial paper program, a financing tool companies use for working capital needs. JPMorgan created the on-chain token representing the U.S. commercial paper, or USCP, and facilitated delivery-versus-payment settlement to minimize counterparty risk by ensuring simultaneous exchange of assets and funds. Galaxy Digital's investment banking arm structured the issuance, while Coinbase provided private-key custody, wallet services, and on- and off-ramp capabilities for USDC. Franklin Templeton, known for its tokenized money market fund, joined as an investor alongside Coinbase.

This marks one of the earliest U.S. debt issuances on a public blockchain, highlighting the integration of traditional finance with distributed ledger technology. Solana was selected for its high transaction speeds,...