Dec 11 (Reuters) – J.P. Morgan said on Thursday that it issued a U.S. commercial paper for Galaxy Digital Holdings on the Solana blockchain, \u200bmarking an important step in the broader institutional adoption of digital assets.<\/p>\n
Cryptocurrency \u200cexchange Coinbase Global and investment management firm Franklin Templeton purchased the commercial paper, a short term and \u200cunsecured debt instrument.<\/p>\n
The deal is among the earliest that uses blockchain for the issue and service of securities, which J.P. Morgan called a “global milestone”, as traditional finance begins to intersect with the new technology.<\/p>\n
The debt deal is worth $50 million, according to a \u2060person familiar with the matter.<\/p>\n
Blockchain \u200cplatforms, such as Solana which was founded in 2017 and launched its mainnet three years later, have seen a keen interest from \u200dthe legacy finance institutions due to their high speed and low transaction costs.<\/p>\n
The “landmark transaction is an important step toward building the future of finance, demonstrating institutional adoption of digital assets \u200band our capability to securely bring new instruments on-chain in a complex legal \u200cand regulatory environment via Solana,” said Scott Lucas, Head of Markets Digital Assets at J.P. Morgan, in a statement.<\/p>\n
Prior issuances on J.P. Morgan’s private, permissioned blockchain platform include a municipal securities offering for the City of Quincy in April 2024 and a U.S. commercial paper issuance for Oversea\u2011Chinese Banking Corporation in August 2025.<\/p>\n
“In the \u2060first half of next year, we intend to \u200bbuild on this momentum by exploring how this \u200bstructure and J.P. Morgan’s role in it can be expanded, not just in terms of the investor and issuer base but also security \u200dtype,” Lucas said.<\/p>\n
J.P. Morgan \u2060acted as the arranger in the deal and created the on-chain USCP token. Both the issuance and redemption proceeds will be paid in USDC, \u2060a stablecoin issued by Circle.<\/p>\n
Stablecoins are cryptocurrencies designed to track the value of a real\u2011world currency, typically \u200cthe U.S. dollar.<\/p>\n
(Reporting by Pritam Biswas in Bengaluru and Anirban Sen \u200cin New York; Editing by Shailesh Kuber)<\/p>\n","protected":false},"excerpt":{"rendered":"Dec 11 (Reuters) – J.P. Morgan said on Thursday that it issued a U.S. commercial paper for Galaxy…\n","protected":false},"author":3,"featured_media":440550,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[64,203347,30552,203349,203345,45217,203348,203346,67,132,68],"class_list":{"0":"post-440549","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-commercial-paper","10":"tag-digital-assets","11":"tag-finance-institutions","12":"tag-galaxy-digital-holdings","13":"tag-j-p-morgan","14":"tag-scott-lucas","15":"tag-solana-blockchain","16":"tag-united-states","17":"tag-unitedstates","18":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115702097791019527","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/440549","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=440549"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/440549\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/440550"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=440549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=440549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=440549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}