Key Takeaways
- Galaxy Digital has issued its first tokenized commercial paper on the Solana blockchain.
- Coinbase and Franklin Templeton bought the digital notes.
- USDC powers issuance and redemption.
Galaxy Digital has completed its first tokenized commercial paper issuance on Solana, in a deal arranged by JPMorgan, the bank announced on Thursday, Dec. 11.
The notes were purchased by Coinbase and Franklin Templeton, both of which are active in the tokenization space.
Galaxy Issues Tokenized Commercial Paper
The recent commercial paper offering marks Galaxy’s latest foray into tokenization.
Previously, the firm had issued its own Class A Common stock as Solana tokens and had explored novel on-chain loan mechanisms using an NFT that represented a Stradivarius violin.
For the commercial paper offering, Circle’s USDC has been integrated for issuance and redemption, while JPMorgan created the token and facilitated the delivery-versus-payment settlement.
The American Bank has emerged as a leader in the field. For instance, Singapore’s second-largest bank, OCBC, issued a $1 billion tokenized commercial paper program using JPMorgan’s Kinexys platform in August.
Coinbase Buys Galaxy Debt
The first buyers of Galaxy’s tokenized notes were Coinbase and Franklin Templeton, providing early institutional validation for the structure.
Beyond its role as an investor, Coinbase provided wallet services for the tokenized notes and powers the USDC on- and off-ramp.
Celebrating the “milestone transaction,” Coinbase Institutional Co-CEO Brett Tejpaul called the deal a “powerful demonstration of how institutional finance is embracing public blockchain technology.”
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James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
