Keep pulling the thread on Scott Lucas.
JP Morgan participated in a $50 million commercial paper trade on the Solana public network, where Galaxy was the issuer and Coinbase and Franklin Templeton were the buyers.
JP Morgan plans to expand its on-chain capital markets activities to include a wider range of issuers, investors, and financial products.
JP Morgan is exploring the possibility of conducting on-chain equity transactions and, eventually, derivatives on public blockchains.
Scott Lucas of JP Morgan asserts that Solana will be a key component in the future development of capital markets on public blockchains.
The settlement for the $50 million commercial paper trade on the Solana network was conducted using USDC.
JP Morgan utilized Solana's Token22 (Token Extensions) program to tokenize the commercial paper for its on-chain trade.
Scott Lucas of JP Morgan believes that a year ago, the probability of conducting a trade like the $50M commercial paper deal on a public blockchain was zero.
JP Morgan's rationale for exploring public blockchains is to make capital markets more efficient, lower costs, and extend participation, which the firm believes will drive economic growth.
JP Morgan believes its $50 million transaction was the first issuance of commercial paper on a public blockchain.
Within 16 business hours of announcing its on-chain commercial paper trade, JP Morgan received expressions of interest from both potential issuers and investors.
Scott Lucas of JP Morgan believes it will be "some distance" before full-scale regulated financial markets can operate at scale on public blockchains.
JP Morgan chose to work with Solana due to the perceived momentum behind its "internet capital markets" narrative and to promote choice in financial market infrastructure.