JPMorgan Launches Solana-Based USCP Token in Landmark Galaxy Debt Deal

JPMorgan has arranged one of the first corporate debt issuances on a public blockchain, creating a Solana-based token to support a new commercial paper offering for a Galaxy Digital subsidiary. The deal drew participation from Coinbase and Franklin Templeton, marking another major step in bringing traditional financial instruments on-chain.

A First-of-Its-Kind Commercial Paper Issuance

The transaction centers around Galaxy’s debut U.S. commercial paper issuance and the introduction of the USCP token, a tokenized version of Galaxy’s short-term corporate debt. JPMorgan designed the token specifically for this offering, using Solana as the underlying blockchain.

The firms did not disclose the size or terms of the issuance. All issuance and redemption flows were settled in Circle’s USDC stablecoin, which the companies called a first for the commercial paper market.

Scott Lucas, JPMorgan’s Head of Markets Digital Assets, described the deal as an early look at how blockchain may reshape institutional finance.

“This trade demonstrates institutional appetite for digital assets and our capability to securely bring new instruments on-chain using Solana,” he said.

Institutional Players Lean Deeper Into Tokenization

Coinbase supported the offering by providing private-key custody, wallet management, and USDC on- and off-ramp services. Franklin Templeton, an active participant in on-chain debt markets, also purchased a portion of the tokenized notes.

Galaxy has been steadily moving components of its capital markets business on-chain. Earlier this year, it issued tokenized versions of its SEC-registered stock on Solana and continues to back Forward Industries, a major SOL treasury experimenting with blockchain-based financing models.

Jason Urban, Galaxy’s Global Head of Trading, said the latest issuance demonstrates the firm’s vision in practice.

“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.”

Tokenization Experiments Accelerate Across Finance

The Galaxy–JPMorgan deal joins a growing list of traditional institutions experimenting with tokenized debt.

Franklin Templeton has actively issued tokenized U.S. government securities. In 2024, B2C2 became the first private company to issue a fully on-chain corporate bond on Ethereum. Momentum continued this year:

• Singapore’s OCBC launched a $1 billion digital commercial paper program using JPMorgan’s Digital Debt Service on its Kinexys blockchain.
• Societe Generale completed its first U.S. digital bond issuance using Broadridge’s platform on Canton.

Societe Generale issues its first digital bond in the United States on blockchain - Société Générale

Societe Generale successfully completed its first digital bond issuance in the United States, which was made using Broadridge Financial Solutions, Inc.’s tokenization capability on the Canton Network blockchain. The bonds were issued as security tokens registered by Societe Generale-FORGE (SG-FORGE), the subsidiary of Societe Generale dedicated to digital assets. DRW, a leading trading firm proven to drive innovation in markets, purchased the bonds, which are short-term floating rate debt securities linked to SOFR1.

Société Générale

• Guggenheim Treasury Services issued commercial paper on Ethereum and XRP Ledger.
• DBS brought structured notes on-chain via Ethereum.

DBS expands blockchain capabilities by tokenising and distributing structured notes

DBS

Together, these efforts suggest that tokenization is evolving from isolated pilots to real, recurring financial activity involving mainstream institutions.