J.P. Morgan has taken a major step forward in the evolution of blockchain-based finance by arranging a $50 million on chain U.S. commercial paper issuance for Galaxy Digital Holdings on the Solana blockchain. Announced on Thursday, this marks one of the earliest tokenized debt deals to be executed on a public blockchain network in the United States an important milestone for real-world asset (RWA) tokenization.
The financial giant directly tokenized the short term corporate bond, creating the blockchain-based security and overseeing settlement during the primary issuance stage. The tokenized assets were purchased by Franklin Templeton and Coinbase, demonstrating growing institutional confidence in blockchain-enabled financial products.
According to the announcement, both issuance and redemption will be conducted using USDC, Circle’s dollar pegged stablecoin, further solidifying stablecoins as an integral part of next generation financial settlements.
Galaxy: “Open, Programmable Infrastructure Is the Future”
Commenting on the development, Jason Urban, Global Head of Trading at Galaxy, noted:
“We’re putting into practice the model we’ve long believed in: open, programmable infrastructure that supports institutional-grade financial products.”
The deal underscores how tokenization can enhance liquidity, reduce settlement friction, and eliminate multiple layers of financial intermediaries making corporate bonds more accessible and efficient to issue.
Industry analysts estimate that tokenizing commercial, municipal, and sovereign bonds could drive the sector’s market capitalization to $300 billion by 2030, as adoption accelerates across global financial hubs.
Asia Pushes Ahead with Large Scale Bond Tokenization
While the U.S. moves toward more public-chain experimentation, Hong Kong and mainland China are rapidly advancing large scale tokenization efforts.
Hong Kong’s Five-Year Onchain Finance Plan
The Hong Kong Monetary Authority (HKMA) recently announced an ambitious plan to tokenize financial assets including bonds and physical assets by 2030. According to HKMA, bringing real-world assets onchain will:
- enhance cross-border settlement efficiency
- reduce operational costs
- prepare Hong Kong’s financial sector for deeper integration with artificial intelligence
China’s Digital Yuan–Settled Tokenized Bonds
In November, Hua Xia Bank, a major Chinese financial institution with state ties, issued 4.5 billion yuan (approx. $600 million) in tokenized bonds. Issued by Hua Xia Financial Leasing, the tranche carries a 1.84% yield and is settled entirely in the digital yuan (e-CNY) China’s official central bank digital currency (CBDC).
China began developing the digital yuan in 2014 and has positioned it to become a key infrastructure layer for future digital asset markets and cross-border financial activity.
Tokenization Gains Global Momentum
With J.P. Morgan, Galaxy Digital, Hong Kong, and China pushing forward aggressively, real-world asset tokenization is increasingly viewed as one of the most transformative developments in digital finance.
From faster settlement and lower costs to transparent onchain tracking and 24/7 liquidity, tokenized bonds represent a fundamental shift in how traditional securities are issued, traded, and managed. As major financial institutions continue to adopt public blockchains like Solana, the evolution from traditional to tokenized debt markets appears to be accelerating at a rapid pace.