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Crypto-native asset management firm Galaxy Digital has borrowed $50M from 
Coinbase and Franklin Templeton.
The short-term "commercial paper" issuance was facilitated by J.P. Morgan (the investment banking division of JPMorgan Chase) and tokenized on the 
Solana blockchain under the ticker USDP.
What's the Scoop?
- New Borrowing: USCP is a Solana-native token that represent Galaxy Digital corporate debt; it marks the first time Galaxy has issued commercial paper. Coinbase will be the "custodian" for USCP, and was lead investor in the issuance, alongside Franklin Templeton.
- Entirely Onchain: J.P. Morgan created USCP and was responsible for facilitating the transaction. The bank said that issuance and redemption proceeds would be paid in USDC, a dollar-pegged stablecoin issued by Circle.
- No Recourse: Commercial paper is a short-term, unsecured debt instrument (essentially an IOU) that can be used by large corporations and financial institutions. It is commonly used as bridge financing to service an immediate cash need, such as payroll, inventory, or accounts payable.
What's the Take?
While Galaxy's first ever commercial paper issuance is being widely hailed as a milestone moment for onchain finance, the move raises an uncomfortable question: why does Galaxy need the cash?
Galaxy has completed its first commercial paper issuance – executed onchain on @Solana.
— Galaxy (@galaxyhq) December 11, 2025
Arranged by @JPMorgan, structured by Galaxy, and purchased by @Coinbase and @FTI_US, this transaction is one of the earliest U.S. debt issuances ever completed on a public blockchain.
