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JPMorgan Pushes Deeper Into Tokenization With Galaxy's Debt Issuance on Solana
Galaxy’s onchain debt deal, where JP Morgan acted as arranger, was settled in USDC stablecoin and backed by Coinbase and Franklin Templeton.
Dec 11, 2025, 7:16 p.m.
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What to know:
- J.P. Morgan arranged Galaxy Digital’s commercial paper issuance on the Solana blockchain, one of the first of its kind in the U.S.
- Coinbase and Franklin Templeton bought the short-term debt instrument, settled in USDC
- Tokenization of real-world assets is gaining traction, with projections suggesting the market could reach $18.9 trillion by 2033.
Global bank J.P. Morgan has arranged a landmark commercial paper issuance on the Solana blockchain, in a move that pushes real-world financial instruments deeper into public blockchain infrastructure.
Commercial paper, typically issued through legacy systems, is a short-term debt tool that companies use to raise working capital. This one was structured onchain and settled using USDC, the stablecoin issued by Circle (CRCL).
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J.P. Morgan created the onchain token representing the debt and handled the settlement. Galaxy’s investment banking arm structured the issuance. Coinbase acted both as investor and wallet provider, while Franklin Templeton, which has already created a tokenized money market fund, also invested in the token.
The move underscores the rising institutional interest to use blockchain plumbing for traditional financial instruments, also known as tokenization of real-world assets (RWA) like debt, fund or equity. The process promises efficiency gains, faster settlement, proponents say. The tokenized asset market could mushroom to $18.9 trillion by 2033, BCG and Ripple projected.
The trend has also gained support from U.S. regulators. SEC Chairman Paul Atkins has recently touted tokenization as a key innovation for capital markets, saying in a FOX Business interview last week that it has the potential to change the financial system over the next couple years.
The issuance was the latest example of J.P. Morgan's push into blockchain and tokenized assets. The bank has been an early mover, developing JPM Coin in 2019 and launching its blockchain unit, Onyx, in 2020. That division, now integrated under Kinexys, conducted blockchain-based repo trades, cross-border payments and tokenized asset settlements with partners including BlackRock and Siemens.
Read more: BMW Taps JPMorgan for First Onchain Programmable FX Payment
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