JPMorgan creates Solana-based USCP token to facilitate ‘landmark’ Galaxy debt offering
Coinbase and Franklin Templeton have purchased Galaxy Digital's debt tokens in a landmark transaction executed on the Solana blockchain.JPMorgan has arranged a commercial paper offering for a Galaxy Digital Holdings subsidiary in "one of the first debt issuances ever executed on a public blockchain," according to an announcement on Thursday."Today's transaction is an important step toward understanding the role blockchain will play in the future of financial markets," JPMorgan Head of Markets Digital Assets Scott Lucas said. "This trade demonstrates institutional appetite for digital assets and our capability to securely bring new instruments on-chain using Solana."The firms did not disclose the debt issuance's size or terms.The move marks Galaxy's first U.S. commercial paper issuance as well as the debut of the USCP token, a tokenized version of Galaxy's short-term corporate debt created by JPMorgan on Solana to facilitate the transaction. Both the issuance and redemption proceeds will be paid using Circle's USDC stablecoin, "representing another market first for the USCP market.""The on-chain USCP format strengthens the firm’s short-term funding capabilities and opens access to a growing base of institutional investors incorporating blockchain-based money-market instruments into their portfolios," the companies wrote.Coinbase, one of JPMorgan's closest blockchain partners, is providing private-key custody and wallet services for the newly issued USCP token and on- and off-ramp services for USDC.Galaxy has long experimented with moving its financial operations onchain. Earlier this year, the firm issued tokenized representations of its SEC-registered stock on Solana. The firm is also one of the three major backers of the largest SOL treasury, Forward Industries (FORD), which is experimenting with blockchain-based financialization."This issuance is a clear example of how public blockchains can improve the way capital markets operate," Global Head of Trading at Galaxy Jason Urban said. "By bringing our first commercial paper offering on-chain and helping structure one of the earliest U.S. transactions of its kind, we’re putting into practice the model we’ve long believed in: open, programmable infrastructure that supports institutional-grade financial products."A galaxy of experimentsGalaxy's tokenized debt is the latest in a long run of experiments in modernizing the legacy financial system. Franklin Templeton, for one, has been quite active in onchain debt issuance, primarily through tokenizing U.S. government securities.In 2024, B2C2 became the first private corporation to issue an onchain bond, fully tokenized and managed on Ethereum, The Block was first to report. The pace of experimentation has picked up this year, often involving non-native crypto players.In August, Singapore's second-largest bank Oversea-Chinese Banking Corp established a $1 billion digital U.S. commercial paper program using J.P. Morgan's Digital Debt Service on the bank's Kinexys blockchain. And last month, Societe Generale completed its first digital bond issuance in the U.S. using Broadridge Financial Solutions' tokenization platform on the Canton blockchain.Guggenheim Treasury Services, a subsidiary of Guggenheim Capital, has also turned to blockchains like Ethereum and the XRP Ledger to issue commercial paper, while DBS has put structured notes on Ethereum.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.