JP Morgan has issued a 50 million dollar commercial paper for Galaxy Digital Holdings on the Solana blockchain. Coinbase Global and Franklin Templeton acquired the short-term debt instrument, with issuance and redemption settled entirely in USDC.
Scott Lucas, Head of Markets Digital Assets at JP Morgan, described the transaction to Reuters as a “global milestone” and said it demonstrates the bank’s ability to bring new instruments “safely onto the blockchain in a complex legal and regulatory environment.” The transaction marks another step in JP Morgan’s systematic expansion of its blockchain infrastructure Kinexys, which has processed more than 1.5 trillion dollars in transaction volume since 2019. With average daily payment flows exceeding 2 billion dollars and tenfold year-on-year growth, the largest US bank is positioning itself as a leading institutional player in tokenized securities.
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From private blockchain to public Solana integration
The Galaxy Digital issuance represents a notable strategic shift. While JP Morgan previously operated exclusively on its private Kinexys platform, the bank is now using a public blockchain for securities issuance for the first time. JP Morgan acted as arranger of the transaction and created the on-chain USCP token representing the debt instrument. Previous issuances on the Kinexys platform included a municipal bond for the city of Quincy, Massachusetts, in April 2024 with a volume of 10 million dollars, as well as a commercial paper for Oversea-Chinese Banking Corporation in August 2025.
The OCBC transaction also marked a turning point. The Singaporean bank established a 1 billion dollar program for digital US commercial papers on the Kinexys platform, with State Street acting as the first third-party custodian. The initial issuance received the highest short-term ratings, P-1 and F1+, from Moody’s and Fitch. OCBC was able to receive the funds within minutes – a dramatic efficiency gain compared to traditional settlement processes that take several days.
The choice of Solana reflects growing interest among traditional financial institutions in public blockchains offering high transaction throughput and low costs. With its ability to process thousands of transactions per second, the blockchain has established itself as a preferred platform for institutional use cases.
Kinexys ecosystem expands into new asset classes
The rebranding of the Onyx platform to Kinexys in November 2024 signaled JP Morgan’s ambition to move beyond pure payment processing. Umar Farooq, Co-Head of JP Morgan Payments, announced at the Singapore Fintech Festival the expansion of the platform to include foreign exchange trading, asset tokenization, and securities settlement. The integration of foreign exchange functionality has enabled real-time FX settlement since the first quarter of 2025, initially for USD and EUR. In April 2025, the launch of GBP-denominated blockchain deposit accounts followed in London.
The platform’s Tokenized Collateral Network (TCN) now processes more than 300 billion dollars in repo transactions and enables the use of tokenized money market fund shares as collateral for lending transactions. Given the 15 trillion dollar collateral market, JP Morgan sees significant growth potential. In October 2025, the bank also completed its first blockchain-based private fund transaction and launched Kinexys Fund Flow – a solution for the seamless distribution of alternative investment funds.
The collaboration with Chainlink and Ondo Finance demonstrates JP Morgan’s willingness to connect its own blockchain infrastructure with public blockchains. The three companies conducted a cross-chain delivery-versus-payment test transaction in which Ondo’s tokenized US Treasuries (OUSG) were exchanged for USD deposits at JP Morgan. This interoperability could enable institutional investors to access a broader range of tokenized assets.
Institutional adoption accelerates
The participation of Coinbase and Franklin Templeton in the Galaxy Digital transaction underscores the growing convergence between crypto-native companies and traditional asset managers. Franklin Templeton manages 1.67 trillion dollars and launched a blockchain-based money market fund as early as 2021. Since November 2025, Coinbase has been working with JP Morgan to introduce its USD deposit token JPMD on the Coinbase-developed Base blockchain.
This expansion is occurring in parallel with similar initiatives by other financial giants. BlackRock tokenized its BUIDL fund across multiple blockchains and reached 2.5 billion dollars in assets under management, making it the world’s largest tokenized fund. Goldman Sachs introduced its own digital asset platforms, while Citigroup is testing tokenized repos and deposits. These parallel developments point to a structural shift in financial infrastructure.
Regulatory developments in the United States are supporting this trend. The appointment of Paul Atkins as SEC chairman by President Donald Trump signals a more crypto-friendly stance by regulators. In July 2025, Atkins launched the “Project Crypto” initiative to modernize the regulatory framework for digital assets and stated that most crypto assets are not securities – a clear break from the enforcement-heavy strategy of his predecessor Gary Gensler.
Outlook for further tokenization
Scott Lucas announced an expansion of the blockchain issuance framework in the first half of 2026, both in terms of the issuer and investor base as well as the types of securities. To date, transactions have been limited to commercial papers and municipal bonds, but the platform could in the future also include corporate bonds, asset-backed securities, or structured products.
Daily transaction volumes of more than 2 billion dollars on Kinexys demonstrate that blockchain-based financial infrastructure is no longer limited to pilot projects, but is increasingly achieving operational relevance. The tenfold annual growth in payment flows points to rising acceptance among institutional clients. With the integration of additional currencies, expansion into further asset classes, and increasing interoperability with public blockchains, JP Morgan is positioning itself as a leading force in the tokenization of traditional financial markets.
