Global bank JP Morgan has arranged a landmark commercial paper issuance on the Solana blockchain, in a move that pushes real-world financial instruments deeper into public blockchain infrastructure.
Commercial paper, typically issued through legacy systems, is a short-term debt tool that companies use to raise working capital. This was structured onchain and settled using USDC, the stablecoin issued by Circle (CRCL).
JP Morgan created the onchain token representing the debt and handled the settlement. Galaxy’s investment banking arm structured the issue. Coinbase acted as both an investor and wallet provider, while Franklin Templeton, which has already created a tokenized money market fund, also invested in the token.
The move underscores the growing institutional interest in using blockchain plumbing for traditional financial instruments, also known as tokenization of real assets (RWA) such as debt, fund or shares. The process promises efficiency gains, faster settlement, proponents say. The market for tokenized assets could mushroom to $18.9 trillion by 2033, BCG and Ripple predicted.
The trend has also received support from US regulators. SEC Chairman Paul Atkins has recently touted tokenization as a key innovation for capital markets, saying in a FOX Business interview last week that it has the potential to change the financial system over the next few years.
The issuance was the latest example of JP Morgan’s push into blockchain and tokenized assets. The bank has been an early mover, developing JPM Coin in 2019 and launching its blockchain unit, Onyx, in 2020. The division, now integrated under Kinexys, conducted blockchain-based repo trades, cross-border payments and tokenized asset settlements with partners including BlackRock and Siemens.
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