JPMorgan Facilitates First U.S. Blockchain Debt Deal for Galaxy Digital

TLDR

• JPMorgan arranged a commercial paper issuance for Galaxy Digital using Solana blockchain.
• The debt issuance was settled in USDC stablecoin, marking a significant blockchain use case.
• Coinbase and Franklin Templeton participated as investors, highlighting institutional interest.
• The deal represents a shift toward tokenizing real-world financial assets on blockchain.
• The tokenized asset market could reach $18.9 trillion by 2033, according to BCG and Ripple projections.

JPMorgan has arranged a groundbreaking commercial paper issuance for Galaxy Digital using the Solana blockchain. This marks one of the first of its kind in the U.S. and is settled using USDC, a stablecoin issued by Circle.

JPMorgan’s Role in the Galaxy Digital Issuance

According to a report by Bloomberg, JPMorgan served as the arranger for Galaxy Digital’s commercial paper issuance, which is a short-term debt instrument used by companies to raise working capital. The deal was structured on the Solana blockchain, offering a more efficient and faster settlement process compared to traditional systems.

Coinbase and Franklin Templeton both invested in the debt issuance, underscoring the increased institutional interest in blockchain technology for traditional financial instruments. Galaxy’s investment banking arm handled the structuring of the issuance, while JPMorgan took charge of the settlement process.

Coinbase acted as both an investor and wallet provider for the transaction. Franklin Templeton, a major player in investment funds, also took part in the deal. This collaboration between leading institutions sets a strong precedent for blockchain-based debt transactions in the future.

Tokenization of Real-World Assets Gaining Momentum

The use of blockchain technology for tokenizing real-world assets (RWA) like debt instruments has been growing rapidly. Tokenization promises several benefits, including faster settlement times and reduced transaction costs.

According to a report by BCG and Ripple, the tokenized asset market could reach $18.9 trillion by 2033. JPMorgan’s involvement in this transaction further solidifies its position as a leader in blockchain innovation within the financial sector.

As it was reported by Blockonomi, the bank previously launched JPM Coin and developed its Onyx blockchain unit, which has executed several blockchain-based transactions. As blockchain adoption in finance continues to rise, the tokenization of assets is expected to gain more traction, with institutions like JPMorgan leading the charge.