JPMorgan Advances Tokenization with Galaxy Digital's Debt Issuance on Solana Blockchain
JPMorgan has facilitated Galaxy Digital's commercial paper issuance on the Solana blockchain, marking one of the first US issuances of this type on Solana. The short-term debt instrument was settled in USDC, with Coinbase and Franklin Templeton among the purchasers of the notes. JPMorgan was responsible for creating the onchain token representing the debt, while Galaxy Digital's investment banking arm structured the issuance. Coinbase served both as an investor and wallet provider, and Franklin Templeton also invested in the commercial paper.
This deal illustrates the growing institutional adoption of tokenization for real-world assets such as debt. Market projections by BCG and Ripple estimate tokenization could reach up to $18.9 trillion by 2033. Regulators have expressed support for tokenization, with SEC Chairman Paul Atkins describing it as a key innovation for capital markets that has the potential to reshape the financial system in coming years.
The transaction aligns with JPMorgan's broader initiatives in blockchain technology that began with JPM Coin in 2019 and Onyx in 2020 (now part of Kinexys). Their ventures in blockchain include repo trades, cross-border payments, and tokenized asset settlements involving BlackRock and Siemens. This latest arrangement underscores a shift towards utilizing blockchain infrastructure for traditional financial instruments like commercial paper to enhance efficiency and speed of settlement.
