JPMorgan announced that it has issued a short-term debt instrument on the Solana blockchain for Galaxy Digital as institutional adoption of digital assets accelerates.
The transaction announced by the bank is considered a key 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 debt offering. This tokenization of short-term unsecured debt instruments on the blockchain is an example of the tokenization trend that has gained momentum, particularly in the United States, with the introduction of new regulations. The Trump administration’s move to deregulate cryptocurrencies has paved the way for increased valuations of companies in this sector and rapid adoption of cryptocurrency-based financial products.
This transaction stands out as one of the earliest examples of blockchain being used in both the securities issuance and servicing process. Founded in 2017 and launching its mainnet three years later, Solana has proven effective in accelerating the adoption of blockchain-based products by traditional financial institutions due to its high transaction speeds and low costs.
“We aim to expand this structure and JPMorgan’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,” Scott Lucas, JPMorgan’s head of digital asset markets, told Reuters. Lucas added that he believes there is strong demand for this innovation and will continue to support customers.
The bank’s previous issuances on its proprietary private blockchain platform include the City of Quincy’s municipal bond issuance in April 2024 and the Overseas Chinese Banking Corporation’s commercial note issuance in August 2025.
In the final agreement, JPMorgan assumed both the role of regulator and created the on-chain USCP token.
*This is not investment advice.
