JP Morgan arranged a $50 million chain -based commercial debt issuance for Galaxy Digital on Solana, marking the earliest chain traded blockchain debt transaction in the US.
JP Morgan, a financial services group, has completed a groundbreaking deal in the digital asset sector by arranging a $50 million blockchain-based US commercial debt issuance for Galaxy Digital Holdings on the Solana network. This is one of the earliest publicly traded debt transactions in the US, opening a new chapter for the application of chain technology to traditional Capital markets.
The issuance of digital short-term corporate bonds was carried out by JP Morgan itself. The bank created the corresponding chain token for the bonds and handled the settlement of the primary issuance, demonstrating its technical capabilities and commitment to leading in the decentralized finance sector. The choice of Solana over other chain such as Ethereum or permissioned networks reflects JP Morgan's assessment of transaction processing speed and cost efficiency.
Major financial institutions participated in the purchase.
The digitized securities were sold to asset management firm Franklin Templeton and cryptocurrency exchange Coinbase, while issuance and redemption payments were made using USDC , Circle 's USD- Peg stablecoin. The involvement of these major players underscores the credibility and potential of the digitized bond market. Jason Urban, Head of Global Trading at Galaxy, noted that the company is putting into practice a long-held model of an open, programmable infrastructure supporting institutionally standardized financial products.
Digitizing corporate bonds, government bonds, and municipal bonds can reduce costs and shorten settlement times by eliminating financial intermediaries from the issuance and clearing process. Analysts predict this sector could reach a market Capital of $300 billion by 2030, indicating enormous growth potential.
The trend of digitizing bonds is spreading globally. The Hong Kong Monetary Authority has announced a five-year plan to bring bonds and physical assets onto the chain by 2030, aiming to increase the efficiency of cross-border payments and integrate artificial intelligence into the financial system.
In mainland China, Hua Xia Bank issued 4.5 billion yuan in digital bonds in November, equivalent to $600 million, with a yield of 1.84% and payable entirely in China's central bank digital yuan.
