thedefiant.io
Galaxy Digital Holdings LP has issued its first U.S. Commercial Paper on the Solana blockchain, which boasts a total value locked of over $10 billion.
J.P. Morgan, the largest bank in the world by market capitalization, acted as an arranger for the deal and created the on-chain USCP token used. The securities were purchased by Coinbase, the largest U.S.-based centralized crypto exchange (CEX), and Franklin Templeton.
Payments for both the initial issuance and the redemption will be made in USDC stablecoins from Circle – USDC is currently the second-largest circulating stablecoin with a market capitalization of $78 billion. Meanwhile, Galaxy Digital Partners LLC, Galaxy’s investment banking affiliate, structured the deal.
While blockchain-based debt has been issued before, this transaction is one of the first U.S. commercial paper issuances fully executed on a public blockchain. The issuance also marks Galaxy’s first debt offering. GLXY stock is currently trading at $28.97, down 2% on the day.
“Today’s transaction is an important step toward understanding the role blockchain will play in the future of financial markets,” said Scott Lucas, the Head of Markets Digital Assets at J.P. Morgan. “This trade demonstrates institutional appetite for digital assets and our capability to securely bring new instruments on-chain using Solana.”
How it Works
JPMorgan explained how the process works in a press release: The commercial paper is issued as a digital token (USCP) on the Solana blockchain instead of a traditional ledger entry.
Next, payments for both the initial sale and the redemption are sent directly to investors’ wallets in USDC stablecoins. And by using a public blockchain like Solana, the process becomes more transparent, easier to track, and overall simpler than traditional methods
The announcement comes as Solana’s on-chain ecosystem has grown sharply in recent years, with total ecosystem value locked rising from $3 billion in December 2023 to $35 billion in 2025, The Defiant reported last month. Many users are drawn to Solana because of its low fees and fast transaction speeds.
Galaxy Partners with State Street
Galaxy Digital also announced on Thursday that it and State Street Investment Management will launch the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized private liquidity fund.
The fund will use PYUSD stablecoins for subscriptions and redemptions and is expected to receive a $200 million seed investment from Ondo Finance. SWEEP will initially launch on the Solana blockchain in early 2026, with plans to expand to Stellar and Ethereum.