JP Morgan announced it has issued a short-term debt instrument on the Solana blockchain for Galaxy Digital, at a time when institutional adoption of digital assets is accelerating.
This transaction announced by the bank is considered a significant indicator of the growing interest of traditional financial institutions in issuing blockchain-based securities.
Coinbase Global and Franklin Templeton acted as buyers in the aforementioned $50 million commercial bond issuance. The tokenization of this short-term, unsecured debt instrument on the blockchain is a concrete example of the tokenization trend, which has gained momentum, particularly in the US, with the implementation of new regulations. The Trump administration's move towards looser cryptocurrency regulations has paved the way for increased company valuations in the sector and the rapid spread of crypto-based financial products.
This transaction stands out as one of the earliest examples of blockchain being used in both the issuance and service processes of securities. Solana, founded in 2017 and launching its mainnet three years later, is proving effective in driving the adoption of blockchain-based products by traditional financial institutions due to its high transaction speed and low costs.
Scott Lucas, Head of Digital Assets Markets at JP Morgan, told Reuters, “We aim to expand this structure and JP Morgan’s role in the first half of next year. We aim to diversify not only the investor and issuer base, but also the types of securities.” Lucas added that they believe there is strong demand for this innovation and will continue to support their clients.
The bank's previous issuances on its own private blockchain platform include a municipal bond sale for the City of Quincy in April 2024 and a commercial bill issuance for Oversea-Chinese Banking Corporation in August 2025.
In the final agreement, JP Morgan assumed both the role of a regulator and created the on-chain USCP token.
*This is not investment advice.
