Global bank JP Morgan has organized a historic issuance of commercial paper on the Solana blockchain, in a move that pushes real-world financial instruments onto 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 handled the deal. Galaxy’s investment banking arm structured the issuance. Coinbase acted as an investor and wallet provider, while Franklin Templeton, which has already created a tokenized money market fund, also invested in the token.
The move underlines growing institutional interest in using blockchain technology for traditional financial instruments, also known as tokenization of real-world assets (RWA), such as debt, funds or equities. The process promises efficiency gains and faster settlements, advocates say. The tokenized asset market could skyrocket to $18.9 trillion by 2033, BCG and Ripple projected.
The trend has also gained support from US 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 has the potential to change the financial system over the next two years.
The issuance was the latest example of JP Morgan’s push toward blockchain and tokenized assets. The bank has been one of the first to act, developing JPM Coin in 2019 and launching its blockchain unit, Onyx, in 2020. That division, now integrated under Kinexys, conducted blockchain-based repo operations, cross-border payments and tokenized asset settlements with partners such as BlackRock and Siemens.
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