Fireside: JPMorgan's Scott Lucas

The world's largest bank just completed a historic trade on Solana's public blockchain—and they're just getting started. At Breakpoint 2025, JPMorgan's Scott Lucas revealed how a deal that had "zero probability" just a year ago became reality, signaling a seismic shift in how traditional finance views public blockchain technology.

Summary

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In a groundbreaking development for institutional crypto adoption, JPMorgan participated as arranger in a $50 million commercial paper trade executed entirely on Solana's public blockchain. The deal saw Galaxy issue commercial paper that was purchased by Coinbase and Franklin Templeton, with settlement occurring in USDC using Solana's Token-2022 extensions program. This marks what is believed to be the first commercial paper issuance on a public blockchain.

Scott Lucas, speaking at Solana Breakpoint 2025 in Abu Dhabi, explained that just twelve months prior, the probability of executing such a transaction would have been zero. Regulatory changes, shifting market dynamics, and evolving risk appetites in the United States have opened doors that were previously sealed shut. The implications extend far beyond a single trade—JPMorgan is now fielding incoming interest from both issuers and investors eager to participate in future deals.

The trade represents more than technological novelty. Lucas emphasized that the underlying motivation is economic growth. By making capital markets more efficient through blockchain technology, institutions can reduce costs, extend participation to more market players, and ultimately mobilize capital in ways the current market structure cannot achieve. This efficiency translates directly into more companies gaining access to capital and driving economic expansion.

JPMorgan's commitment to Solana specifically stems from the platform's momentum in the "internet capital markets" narrative, its technical capabilities, and the importance of providing financial markets with choice among blockchain platforms. Lucas indicated plans to expand beyond debt instruments into equity markets and potentially derivatives, though he acknowledged the significant internal hurdles involved in launching new initiatives within a heavily regulated institution.

Key Points:

The Mechanics of the Historic Trade

The $50 million commercial paper transaction involved multiple parties working in concert. JPMorgan served as arranger—sitting in the middle as an accredited intermediary, a role they perform daily in traditional markets. The bank created the token using Solana's Token-2022 extensions program and allocated it to Galaxy's wallet. Galaxy, as the issuer, then distributed the tokenized commercial paper to the buyers—Coinbase and Franklin Templeton—through the Coinbase platform.

Settlement occurred on-chain using USDC, achieving true delivery versus payment (DVP) on a public blockchain. This end-to-end execution on Solana represents a significant milestone, demonstrating that institutional-grade capital markets transactions can function on public blockchain infrastructure. Commercial paper, typically used by companies to manage short-term funding needs within a one-year horizon, was chosen specifically because its shorter duration presents a manageable risk profile for all parties involved.

Why Public Blockchain and Why Solana

Lucas articulated several compelling reasons for JPMorgan's interest in public blockchain technology. Accessibility stands as a primary driver—public blockchains can potentially extend market participation to a broader range of participants. There are also cost considerations: if public blockchain infrastructure becomes commoditized and reliable, financial institutions might prefer using external technology rather than running proprietary systems, potentially lowering costs for clients.

Solana specifically attracted JPMorgan due to the platform's momentum in capital markets applications and its technical capabilities. Lucas noted that demonstrating Solana's viability for regulated financial markets helps provide the industry with choice—an important factor for the healthy development of blockchain-based capital markets. The partnership allows JPMorgan to deeply understand how Solana's technology and ecosystem function while contributing to its growth.

Navigating Internal Approval at the World's Largest Bank

Getting approval for a public blockchain transaction at JPMorgan required extensive effort. Lucas described the process: making a sensible argument for the value proposition, bringing stakeholders along, demonstrating technical understanding, and methodically working through extensive compliance checklists. In a heavily regulated institution, validating new initiatives involves satisfying internal requirements, regulatory expectations, and client concerns—many components that exist two or three degrees removed from the original idea.

The silver lining is that crossing this initial threshold creates a foundation for expansion. JPMorgan can now build upon this successful transaction, extending to more issuers, more investors, and additional products. The hard work of establishing the precedent pays dividends in future opportunities.

Market Reception and Future Plans

The response to the commercial paper trade has been remarkable. Within just 16 business hours of announcement, JPMorgan had already received incoming interest from both potential issuers and investors wanting to learn more, with some expressing direct interest in participating in future deals. Lucas expects this momentum to build in the coming days and weeks.

Looking forward, JPMorgan plans to expand across multiple dimensions. On the debt side, they anticipate extending the program to additional issuers, investors, and products. Lucas also expressed interest in exploring equity markets, noting significant activity in this area in the United States. Once cash markets develop sufficient depth, derivatives exploration becomes viable. For now, JPMorgan intends to focus on deepening its Solana footprint rather than spreading across multiple blockchain platforms.

The Economic Growth Narrative

Lucas was emphatic that blockchain adoption isn't about technological novelty—it's about economic growth. Making markets more efficient means lowering costs and extending access to more participants. This efficiency enables capital mobilization that current market structures cannot achieve. The result: more companies gaining access to capital, enabling them to do more things and drive economic expansion.

This perspective frames public blockchain not as a disruption to existing markets but as an addition that creates new opportunities. Lucas stressed the importance of being "thoughtful" and "steady" while taking real risk—moving too fast and breaking something would destroy the opportunity entirely.

Facts + Figures

• JPMorgan participated in a $50 million commercial paper trade on Solana's public blockchain, believed to be the first such issuance on any public blockchain

• The transaction used Solana's Token-2022 extensions program for tokenization and settled with USDC on-chain

• Deal participants included Galaxy (issuer), Coinbase and Franklin Templeton (buyers), JPMorgan (arranger), Circle (stablecoin), and Solana (infrastructure)

• Just one year ago, Scott Lucas assessed the probability of executing such a trade at "zero"

• JPMorgan received incoming interest from both issuers and investors within 16 business hours of the announcement

• The US commercial paper market features daily issuances with "triple figure billions" turning over with high frequency

• JPMorgan previously executed a deal on its private blockchain for a company launching a $1 billion commercial paper program

• JPMorgan's technology budget is described as "very, very big"

• Future plans include extending to equity markets and potentially derivatives

• Lucas predicts significant activity in the coming year but expects focus to remain on shorter duration instruments

Top quotes

"It's probably a bit surprising to have someone from JP Morgan on a stage using a public blockchain network, but I think it's probably one of many times we'll do this as we go forward."

"A year ago from this time, I think it was a zero probability outcome."

"This is about growth. This isn't about, oh, it's a cool technology. It's not about how I want to do something different."

"If I can make some of these markets more efficient—efficient means it's lower cost, efficient means that I can extend the opportunity to a wider set of participants—then what that really means is I can mobilize capital across the market in a way that I can't necessarily achieve with the current market structure."

"If you go too fast and you do too much and you break something, you lose the opportunity."

"Solana was a pretty easy one to pick. There's a real momentum behind the internet capital market story on Solana."

"Getting work done on one platform is really, really hard. Getting done on multiple platforms is super hard."

"I'm very convinced a lot will happen, and Solana's gonna be a key component of that."

"There's a lot of incredible innovation across this community. There's a lot of appetite for people to explore it."

"Not all of it's gonna be fine for regulated capital markets, and that's okay... having some of those ideas taking the conversation forward is really important, 'cause that's how markets evolve."

Questions Answered

What exactly was the JPMorgan Solana trade and why is it significant?

JPMorgan served as arranger for a $50 million commercial paper issuance on Solana's public blockchain. Galaxy issued the commercial paper, which was purchased by Coinbase and Franklin Templeton, with settlement occurring in USDC. The significance lies in being the first commercial paper issued on a public blockchain by a major financial institution. This demonstrates that institutional-grade capital markets transactions can function on public blockchain infrastructure, potentially opening the door to more efficient, accessible markets.

Why did JPMorgan choose commercial paper as the first product?

Commercial paper was strategically selected due to its risk profile and market characteristics. As a short-term funding instrument (under one year), any problems that arise have limited duration risk—if something changes, the exposure is contained. Commercial paper doesn't trade as frequently as longer-dated instruments, giving all parties time to work through the mechanics. This makes it an ideal "toe in the water" product for exploring public blockchain capabilities before extending to more complex or longer-duration instruments.

How did JPMorgan get internal approval for a public blockchain transaction?

The approval process required making a compelling business case, demonstrating technical understanding, and working through extensive compliance checklists. In a heavily regulated institution like JPMorgan, new initiatives must satisfy internal requirements, regulatory expectations, and client concerns—often involving stakeholders two or three degrees removed from the original idea. The process takes significant time but creates a foundation for future expansion once the initial threshold is crossed.

What changes enabled this transaction after years of being impossible?

Three key factors converged: changes in the regulatory environment, shifting general market dynamics, and evolving risk appetite among institutions. Lucas specifically noted that the situation in the United States had been "compressed" for a long time but has now widened. This allows institutions to finally ask meaningful questions about what role blockchain, public blockchain, stablecoins, and other digital currencies can play in the global economy.

Why did JPMorgan specifically choose Solana over other blockchain platforms?

Solana was selected due to its momentum in the "internet capital markets" narrative, its technical capabilities, and the growing ecosystem. Lucas emphasized the importance of financial markets having choice among platforms, and demonstrating Solana's capabilities for regulated financial markets was part of that broader goal. The bank is now committed to deepening its Solana footprint rather than spreading across multiple platforms, acknowledging that operating on even one platform is extremely difficult.

What does JPMorgan plan to do next on Solana?

JPMorgan plans to extend the debt program across more issuers, investors, and products. They're also interested in exploring equity markets, where significant activity is occurring in the United States. Once cash markets develop sufficient depth and breadth, derivatives exploration becomes viable. Lucas expects the coming year to see growth in short-duration instruments while secondary market infrastructure continues to evolve before longer-dated products become practical.

How has the market responded to the announcement?

The response has been extremely positive. Within just 16 business hours of announcement, JPMorgan received incoming interest from both potential issuers and investors. Some have expressed direct interest in participating in future deals. Lucas expects this momentum to build significantly in the coming days and weeks, with plans capable of meeting the anticipated demand.

What is the ultimate goal of using public blockchain for capital markets?

The ultimate goal is economic growth, not technological novelty. Making markets more efficient—meaning lower cost and accessible to more participants—enables capital mobilization that current market structures cannot achieve. This translates to more companies gaining access to capital and being able to do more things. It's about adding new capabilities to existing market infrastructure rather than replacing what works.