A major Wall Street bank has moved a slice of the U.S. money market onto a public blockchain, using Solana to tokenize short-term U.S. debt with cash in and out via a stablecoin. This showcases a shift towards transacting in size on public networks rather than private chains.

J.P. Morgan arranged a U.S. commercial paper issuance for Galaxy Digital on Solana, with securities bought by Coinbase and Franklin Templeton. The bank acted as arranger, created an on-chain commercial paper token, and settled delivery-versus-payment using USDC stablecoin, fully tokenizing both asset and cash leg.

J.P. Morgan hailed the transaction as one of the earliest debt issuances on a public blockchain, marking a significant milestone for global financial markets. The bank sees this as an important step in understanding the future role of blockchain in financial markets, with the commercial paper issued as a digital token on Solana.

Solana’s blockchain, known for speed and scalability, is favored for institutional experiments due to its ability to process thousands of transactions per second with low fees. Unlike older blockchains, Solana’s architecture allows high-volume activity without congestion, crucial for financial instruments like commercial paper.

This marks one of the first U.S. commercial paper deals to move to a public network, as previous issuances were on J.P. Morgan’s private platform. The shift to a public blockchain accelerates the journey towards a more open, efficient, and resilient financial ecosystem, as institutions like Franklin Templeton are now transacting on blockchain in a significant way.

Read more at Yahoo Finance: JPMorgan issues first U.S. debt deal on popular blockchain