JPMorgan to Tokenize $50 Million of Galaxy Bonds with Solana

Debt transaction on the US public network succeeds… On-chain bonds expand with multi-institutional participation.

JPMorgan, a major U.S. investment bank, announced on the 12th that it has prepared a $50 million U.S. commercial paper issuance for Galaxy Digital Holdings based on the Solana blockchain. This marks one of the earliest examples of tokenized debt executed on a U.S. public network, and JPMorgan explained that it created the blockchain tokens corresponding to the bonds and processed the initial issuance settlement.

This tokenized corporate bond was sold to asset management firm Franklin Templeton and digital asset exchange Coinbase, and issuance and redemption will be settled in Circle's stablecoin, USDC. Jason Urban, Head of Global Trading at Galaxy, praised the deal, saying, "This represents a realization of a model for implementing institutional-grade financial products on open programming infrastructure."

Tokenization technology can transform existing bonds, such as commercial paper, government bonds, and municipal bonds, into blockchain-based instruments, reducing clearing costs and settlement times. Market research firms project that the on-chain bond market could grow to a market capitalization of $300 billion by 2030.

The tokenization trend is also rapidly expanding in Asia. The Hong Kong Monetary Authority (HKMA) announced a five-year plan to move bonds and real assets on-chain by 2030, aiming to improve cross-border settlement efficiency and integrate AI into financial infrastructure.

In November, Huaxia Bank, a central bank affiliate of China's central government, issued $600 million in tokenized yuan bonds, yielding a 1.84% yield and settling exclusively in the digital yuan (CBDC), a central bank digital currency (CBDC) the Chinese government began developing in 2014.

Tokenized bonds represent the initial stages of blockchain technology's full-scale introduction into the traditional bond market, and the pace of institutional adoption is accelerating with the active participation of global financial and policy institutions.

Reporter Jeong Ha-yeon yomwork8824@blockstreet.co.kr