Galaxy Digital has issued commercial paper for the first time, using the Solana blockchain, with Coinbase and Franklin Templeton investing. JPMorgan arranged the issuance, created the USCP token and enabled delivery versus payment settlement.
This is one of the first US commercial paper issuances to use any kind of distributed ledger given the uncertainty surrounding the sector under the previous administration. At the other end of the maturity spectrum, while there have been numerous digital bond issuances worldwide, again hardly any have occurred stateside. JP Morgan has been active in this sector outside the United States. For example, Singapore’s OCBC Bank has launched a $1 billion commercial paper issuance program, using the bank’s Kinexys permissioned blockchain. The benefit of public blockchains is their greater openness.
“Today’s transaction is an important step toward understanding the role blockchain will play in the future of financial markets. This trade demonstrates institutional appetite for digital assets and our capability to securely bring new instruments on-chain using Solana,” said Scott Lucas, Head of Markets Digital Assets, JP Morgan.
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