# Galaxy Digital Borrows $50M from Coinbase, Franklin Templeton Using Blockchain

*Author: Jack Inabinet*
*Published: Dec 11, 2025*
*Source: https://www.bankless.com/read/news/galaxy-digital-borrows-50m-from-coinbase-franklin-templeton-using-blockchain*

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Crypto-native asset management firm Galaxy Digital has [borrowed](https://www.reuters.com/technology/jp-morgan-harnesses-blockchain-debt-issuance-amid-digital-asset-adoption-boost-2025-12-11/) $50M from Coinbase and Franklin Templeton.

The short-term "commercial paper" issuance was [facilitated](https://www.jpmorgan.com/about-us/corporate-news/2025/jpmorgan-commercial-paper-issuance-solana-blockchain) 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](https://www.jpmorgan.com/about-us/corporate-news/2025/jpmorgan-commercial-paper-issuance-solana-blockchain) 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](https://twitter.com/solana?ref_src=twsrc%5Etfw).Arranged by [@JPMorgan](https://twitter.com/jpmorgan?ref_src=twsrc%5Etfw), structured by Galaxy, and purchased by [@Coinbase](https://twitter.com/coinbase?ref_src=twsrc%5Etfw) and [@FTI_US](https://twitter.com/FTI_US?ref_src=twsrc%5Etfw), this transaction is one of the earliest U.S. debt issuances ever completed on a public blockchain.— Galaxy (@galaxyhq) [December 11, 2025](https://twitter.com/galaxyhq/status/1999218576264180055?ref_src=twsrc%5Etfw)