Global bank JP Morgan has arranged a groundbreaking commercial paper issuance on the Solana blockchain in an effort to push real-world financial instruments deep into public blockchain infrastructure.
Commercial paper is typically issued through legacy systems and is a short-term debt tool used by businesses to raise working capital. It was built on-chain and settled using USDC, a stablecoin issued by Circle (CRCL).
JP Morgan created on-chain tokens to represent the debt and process payments. Galaxy's investment banking division organized the issue. Coinbase acts as both investor and wallet provider, and Franklin Templeton, who has already established a tokenized money market fund, also invested in the token.
The move highlights institutions' growing interest in using blockchain plumbing for traditional financial products, also known as tokenization of real-world assets (RWA) such as debt, funds, and stocks. Supporters say the process improves efficiency and promises faster payments. BCG and Ripple predict that the tokenized asset market could rapidly grow to $18.9 trillion by 2033.
This trend is also gaining support from US regulators. SEC Chairman Paul Atkins recently touted tokenization as a key innovation in capital markets, saying in an interview on FOX Business last week that tokenization has the potential to change the financial system in the coming years.
The issuance marks the latest example of JPMorgan's commitment to blockchain and tokenized assets. The bank is a pioneer, developing JPM Coin in 2019 and launching its blockchain arm, Onyx, in 2020. The division, now consolidated under Kinexys, implemented blockchain-based repo transactions, cross-border payments, and tokenized asset settlements with partners such as BlackRock and Siemens.
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