Global bank JP Morgan has held a historic commercial paper offering 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 on-chain and settled using USDC, the stablecoin issued by Circle (CRCL).
JP Morgan created the on-chain token representing the debt and managed the settlement. Galaxy’s investment banking arm structured the issue. Coinbase acted as both an investor and wallet provider, while Franklin Templeton, who previously created a tokenized money market fund, also invested in the token.
The move highlights growing institutional interest in using blockchain plumbing for traditional financial instruments, also known as tokenization of real-world assets (RWA) like debt, funds or equity. The process promises efficiencies and faster settlement, its supporters say. The tokenized asset market could reach $18.9 trillion by 2033, according to forecasts from BCG and Ripple.
This trend has also gained support from American regulators. SEC Chairman Paul Atkins recently touted tokenization as a key innovation for capital markets, saying in an interview with FOX Business last week that it had the potential to change the financial system over the next two years.
This issuance is the latest example of JP Morgan’s push into blockchain and tokenized assets. The bank was an early adopter of JPM Coin in 2019 and launched its blockchain unit, Onyx, in 2020. This division, now integrated under Kinexys, has conducted blockchain-based repo operations, cross-border payments and settlements of tokenized assets with partners including BlackRock and Siemens.
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