The banking giant JPMorgan has issued tokenised commercial papers worth $50 million on the Solana network for Galaxy Digital, reports Bloomberg.
The securities were acquired by the cryptocurrency exchange Coinbase and asset manager Franklin Templeton. The transactions were conducted using Circle’s stablecoin USDC. Redemption payments will also be made in this stablecoin.
Scott Lucas, head of the bank’s digital assets division, described this operation as a full-fledged pilot project.
“This is no longer just a theory. It allows one to see firsthand all the advantages of blockchain for bond issuance,” he noted.
According to Lucas, despite their usual work with Ethereum, the bank deliberately chose Solana to explore a new environment. JPMorgan plans to continue issuing bonds on public blockchains.
Emma Lovett, head of the credit division in the organisation’s digital assets group, noted that tokenisation fundamentally changes post-trade processes:
“It provides precise, compressed settlement times and radically simplifies transaction processing thanks to a single ledger for all counterparties.”
JPMorgan is increasing its activity in the blockchain sector. In November, the bank issued the JPMD deposit coin on the L2 network Base, aimed at institutional clients.
The company is also working on a platform for interbank transfers of tokenised assets.
Galaxy’s Experience
Galaxy continues to move its financial operations on-chain. In September, the company tokenised its own GLXY shares on Solana. To achieve this, it partnered with Superstate.
Mike Novogratz’s firm also acts as a key investor in Forward Industries, the largest SOL treasury, which is also exploring blockchain financial instruments.
According to Jason Urban, global head of Galaxy’s trading division, the issuance of USCP exemplifies the impact of public networks on capital markets.
“By structuring one of the first US commercial paper issuances on blockchain, we are implementing our model: an open programmable infrastructure designed for institutional financial instruments,” he explained.
Earlier, Standard Chartered estimated the capitalisation of the RWA segment at $2 trillion by 2028.